State Pension

The State Pension is modelled in PolicyEngine UK as four composable person-level variables, summed into the state_pension aggregate that flows into household benefits. This page describes the current model and the residual aggregate gap against OBR outturn tracked under #1632.

Components¶

Four variables under gov/dwp/:

• basic_state_pension — the pre-2016 flat-rate State Pension paid to people who reached State Pension age before 6 April 2016 (state_pension_type == BASIC). Pro-rated by state_pension_reported against the data-year maximum so partial NI records get the right partial rate.

• new_state_pension — the post-2016 flat-rate State Pension paid to people who reached State Pension age on or after 6 April 2016 (state_pension_type == NEW). Same pro-rating logic.

• additional_state_pension — the earnings-related top-up:

  • For BASIC recipients, this is SERPS / S2P (the pre-2016 State Earnings-Related / State Second Pension).

  • For NEW recipients, this is the Protected Payment — pre-2016 accrual that exceeds the new flat rate, folded into NSP under current law but tracked separately in PolicyEngine so the reform surface stays clean.

  • Both are the reported weekly amount above the type’s full rate in the data year, max(reported - flat_max_for_type, 0), uprated by September CPI as described below and multiplied by WEEKS_IN_YEAR.

• state_pension_age_addition — the age addition: 25p a week (gov.dwp.state_pension.age_addition.amount) for a person over the age of 80 (age_addition.age) who is entitled to a retirement pension under the Social Security Contributions and Benefits Act 1992 (s.79 and Sch 4 Part III para 8), read as a BASIC type with a State Pension reported in the data year. It is never uprated: each Up-rating Order excludes it (for example SI 2026/148 art 3(2)(a)). A new State Pension gets none, because s.79(1) covers only a retirement pension “under this Act”, words the Pensions Act 2014 inserted (Sch 12 para 85). A person is over an age once they have attained it (SSCBA 1992 s.173). The model reads age on 6 October, the middle of the fiscal year, as it does for State Pension age, so a person who turns 80 by then gets the year’s £13 in full and one who turns 80 later in the year gets none until the next.

The survey records the State Pension in payment. For Family Resources Survey respondents, state_pension_reported is the benefits table’s weekly State Pension amount (benefit code 5) times 52, and policyengine-uk-data maps no separate code for the age addition (datasets/frs.py), so the model assumes the reported amount of a basic State Pension recipient over 80 includes it. state_pension_reported_excluding_age_addition takes the data year’s addition off, at the legislated 25p from 80, and the other three components split what is left. The addition is part of state_pension, so it is taxed and means-tested as the pension is. It is an increase of the pension (s.79(1)), so the model taxes it with the pension it increases: ITEPA 2003 s.577 charges the retirement pensions under SSCBA 1992 ss.44, 48A to 48BB, 51 and 78 as pension income, without naming s.79, and s.677 does not exempt the age addition (the pre-2003 charge in ICTA 1988 s.617(1) reached every benefit under Parts II to IV of the 1992 Act not excepted, and the age addition was not excepted). Pension Credit counts it as retirement pension income (State Pension Credit Act 2002 s.16(1)(e)), as do Universal Credit (Universal Credit Regulations 2013 regs 66(1)(a) and 67) and pension-age Housing Benefit (Housing Benefit (State Pension Credit) Regulations 2006 reg 29(1)(c)). It never reduces Carer’s Allowance: an age addition is adjusted only by reference to another age addition (Overlapping Benefits Regulations 1979 reg 4(3) and Sch 1 row 4), so overlapping_state_pension leaves it out. It does reduce Scotland’s Carer Support Payment: that payment overlaps with a Retirement Pension, defined as “a pension payable under Part II and Part III of the 1992 Act, excluding any additional pension or graduated retirement benefit” (SSI 2023/302 reg 16(3)(a) and (6)), and the age addition is in Part III. So carer_support_payment_overlapping_state_pension keeps it in.

Two edges. A basic State Pension recipient over 80 whose reported amount is below the addition (under 25p a week) has a reported amount of nil once the addition is taken off, and is paid the £13 a year, which is more than they reported. And the contributed gov.contrib.cec.state_pension_increase reform scales state_pension as a whole, age addition included, although no Up-rating Order raises the age addition.

The basic, new and additional State Pension split the amount a person reported in the data year (the dataset’s first year), less any age addition, by the person’s state_pension_type in the year simulated, for anyone over State Pension age:

• The part up to that type’s full rate in the data year is basic or new State Pension. It is uprated by the type’s full rate: the year’s over the data year’s.

• The part above it is additional State Pension. It is uprated by September CPI: gov.economic_assumptions.indices.september_cpi_uprating in the year over the data year.

That follows the law. Each year’s Up-rating Order applies the triple lock to the full rates; the statutory minimum is earnings growth (Social Security Administration Act 1992 s.150A). The Order raises additional pensions (s.150(1)(c)), increments for deferring the pension and the amounts of new State Pension above the full rate (protected payments, s.151A) by the September CPI of the year before. In April 2026 the full rates rose 4.8% and the rest 3.8% (Social Security Benefits Up-rating Order 2026, articles 4(2), 4(3), 6(1) and 6(3)); in April 2025, 4.1% and 1.7% (2025 Order, the same articles). Graduated retirement benefit, paid with the pension, also rose by September CPI (article 11 of each Order). Until the fix for #1941 the model uprated the part above the full rate by the full rate too.

For the years the Up-rating Orders cover (to April 2026), the model reproduces each Order’s percentage exactly. For later years the Act sets a floor, not a rate: the Order must raise additional pensions “by a percentage not less than” the rise in prices (s.150(2)), and protected payments by no less (s.151A(3)). The model pays exactly September CPI, the floor and what every Order has given. A reform that raises the part above the full rate by more has no parameter to set; it needs a reform to this variable.

One simplification remains: additional pension inside a reported total below the full basic rate is not separated, so it is uprated with the full rate (as overlapping_state_pension also notes).

So a reform to the full rates, or to the triple lock, moves only basic and new State Pension. A reform that sets a full rate to zero leaves additional pensions and protected payments in place; gov.contrib.abolish_state_pension removes all State Pension. The September CPI index is read from the simulation’s own parameters, so a scenario applied before the data load that changes September CPI, or the calendar-year CPI growth its forecast follows, moves the part above the full rate.

Survey ages are held fixed in the years a dataset is projected to, so a record’s birth cohort moves one year later for each year projected, and its type can change: a man aged 75 in the 2024-25 data reached State Pension age in 2014, on the basic State Pension, but a man aged 75 in 2030-31 reached it in 2021, on the new State Pension. Until the fix for #1921, additional_state_pension used the data year’s type while the other two used the year’s, so for records like his the part of the reported amount between the basic and new flat rates was paid twice. The records keep their reported amounts: a record that moves to a new State Pension cohort is not given a new State Pension award. That is one reason the model’s State Pension per recipient grows more slowly than DWP’s (see Known aggregate gap below).

The flag-up split (state_pension_type) is settled by PR #1618: classification is based on whether the person reaches State Pension age before or on/after 6 April 2016. A computed state_pension_type is NONE below State Pension age, so no component is paid there.

State Pension age¶

State Pension age depends on date of birth. Pensions Act 1995 Schedule 4 paragraph 1 sets it for each birth period, either as an age or as the day on which it is attained, and the Pensions Act 2014 s.26 raises it from 66 to 67 for people born on or after 6 April 1960: 66 years and 1 to 11 months for births from 6 April 1960 to 5 March 1961, and 67 from 6 March 1961. The parameters under gov/dwp/state_pension/age/ encode that timetable row by row:

• age_by_birth_date — the age, in months, by date of birth (women, and men born on or after 6 December 1953);

• day_by_birth_date — the day, where the statute sets a day instead;

• male/age and male/born_before — rule (1): men born before 6 December 1953 attain it at 65.

A person attains State Pension age on the later of the two. The model places each person’s date of birth with age and months_since_last_birthday, which counts months since their last birthday on 6 October, the middle of the fiscal year. date_of_birth holds the resulting day (as a YYYYMMDD number), which other date-of-birth rules also read, such as the 6 April 2017 cutoffs in Universal Credit, Child Tax Credit and Pension Credit:

• state_pension_age is the person’s own State Pension age;

• months_since_state_pension_age is how long before 6 October they attained it (negative if later);

• is_SP_age is whether they have attained it by 6 October, so are over it for most of the year.

Simulations of a household situation take a whole age to be the middle of the year of age (six months since the birthday); a fractional age is read as the exact age on 6 October, overriding months_since_last_birthday even when another person supplies birthday months. The default implies a birth date of 6 April: an entered age of 66 is above State Pension age at the 6 October check in 2026-27 and below it in 2027-28. Set a fractional age or months_since_last_birthday to specify a different inferred birth date, or set date_of_birth directly (a YYYYMMDD number, with age as the age on 6 October): state_pension_age, months_since_state_pension_age, is_SP_age, the State Pension Credit qualifying age and its attainment, and the Savings Credit age test then all follow that day. A value that is not a calendar date, or that gives a different age, raises an error. Survey microdata records whole years only, so in simulations built from data, including a region or constituency filtered from it, each single year of age and sex is spread evenly over the year by weight, and filter_dataset carries each person’s place into a household it extracts. The weighted share of each age over State Pension age then matches the statute: three quarters of 66-year-olds in 2026-27, a quarter in 2027-28 and none from 2028-29.

Other programmes test State Pension age in two ways:

• The qualifying age for State Pension Credit (State Pension Credit Act 2002 s.1(6)) is a woman’s State Pension age, and for a man the State Pension age of a woman born on the same day. state_pension_credit_qualifying_age applies the timetable without rule (1), and has_attained_state_pension_credit_qualifying_age is whether it is reached by 6 October. Pension Credit, Universal Credit (Welfare Reform Act 2012 s.4(1)(b)), Housing Benefit (Housing Benefit Regulations 2006 reg 5 in both sets), Council Tax Reduction’s pension-age schemes, Income Support (SSCBA 1992 s.124(1)(aa)), the benefit cap (which reaches only working-age Housing Benefit and Universal Credit) and Winter Fuel Payment (to September 2024) use it. It differs from is_SP_age only for men born before 6 December 1953, so only in 2018-19 and earlier: a man born on 6 April 1952 reached it on 6 May 2014, nearly three years before his State Pension age of 65.

• Class 4 National Insurance stops from the first tax year that begins on or after the day State Pension age is reached: a person over it at the beginning of the tax year (6 April) is excepted (Social Security (Contributions) Regulations 2001 reg 91(a)), so ni_class_4_liable needs months_since_state_pension_age below 6. Someone who reaches it on 6 April itself is read as over it at the beginning of that year. With default whole-number ages in a household situation, the inferred birthday is 6 April. Entering an integer State Pension age therefore makes this boundary reading determine the Class 4 result; fractional ages, explicit birthday-month inputs and a date_of_birth input can place the birthday on another day. Class 1 employee contributions stop at State Pension age itself (SSCBA 1992 s.6(3)), which the annual model reads as is_SP_age.

A person attains an age at the start of the anniversary of their birth (Family Law Reform Act 1969 s.9(1)), and an age of “N years and M months” on the same day of the month, or the month’s last day where that day does not exist; that also gives the three days rule (7A) sets. A reform can change the age or day of any row, or where a row starts; a new phase-in that needs extra rows, such as bringing forward the rise to 68, needs new rows in the parameter files.

The removed scalar parameters gov.dwp.state_pension.age.male and .female remain discoverable in metadata as migration nodes: explicit root get_child lookups, updates, and scalar value-history reads for saved API policies raise an error naming the birth-date scales above. The male.age and male.born_before children remain available for the earlier male cohorts. For example, reform gov.dwp.state_pension.age.age_by_birth_date[14].amount to change the age in months for births from 6 March 1961 until the next bracket; read individual eligibility from is_SP_age or the individual threshold from state_pension_age.

Uprating¶

State Pension flat-rate parameters live in gov/dwp/state_pension/basic_state_pension/amount.yaml and gov/dwp/state_pension/new_state_pension/amount.yaml. Published rates run to 2026-27. Each later April, create_rate_projection.py raises the previous year’s rate by that year’s growth in gov.economic_assumptions.indices.triple_lock, built from the yearly rates in gov.economic_assumptions.yoy_growth.triple_lock, and rounds the result to the nearest 5p (gov.dwp.state_pension.weekly_rate_rounding). The Up-rating Orders round the full rates the same way (Explanatory Memorandum to SI 2020/234, paragraph 7.17), and the previous published rate, uprated and rounded to the nearest 5p, gives every published basic rate from April 2011 and every full new rate from April 2017 (policyengine_uk/tests/test_triple_lock_outturn.py).

The part of a reported State Pension above the full rate is uprated by gov.economic_assumptions.indices.september_cpi_uprating instead (see Components). Its yearly rises, gov.economic_assumptions.yoy_growth.september_cpi_uprating, are the September CPI of the year before from statutory_uprating_inputs.cpi_september (below), rounded to the 0.1 percentage points the ONS publishes, and zero when prices fall (create_september_cpi_uprating.py). They equal the rise each Up-rating Order gave additional pensions from April 2011 to April 2026, including none in April 2016, when September 2015 CPI was -0.1% (policyengine_uk/tests/test_state_pension_components.py). The index is rounded to five decimal places each year, so it differs from the exact product of the rises by less than 0.001%.

The triple lock¶

The rise each April is the highest of:

• earnings growth: average weekly earnings, total pay, whole economy, in May to July of the previous year on a year earlier (ONS KAC3);

• CPI inflation: the 12-month rate in September of the previous year (ONS D7G7);

• 2.5%: triple_lock/minimum_rate.yaml.

create_triple_lock.py computes each element from these statutory inputs, rounded to the one decimal place the ONS publishes. From them it reproduces every published rise from April 2012 to April 2026. April 2011 is the one override (triple_lock/outturn.yaml): the basic State Pension rose by September 2010 RPI (4.6%) during the switch to CPI. The April 2022 suspension of the earnings element is include_earnings set to false for that year.

The yearly rates run from April 2011 to one year past the end of the economic-assumption series.

The statutory inputs¶

gov.economic_assumptions.statutory_uprating_inputs holds:

• cpi_september: September CPI, keyed to 1 September;

• awe_total_pay_may_july: May-July earnings growth, keyed to 1 July, as used in the uprating review.

Each holds published figures and then a null. From the null onwards, create_statutory_uprating_inputs.py fills in a forecast: calendar-year growth in the matching OBR series (yoy_growth.obr.consumer_price_index or yoy_growth.obr.average_earnings) plus forecast_gap. The gap is the OBR’s statutory-basis forecast minus the calendar-year growth stored in yoy_growth.yaml, so that in the baseline the input equals the OBR’s figure:

• September CPI: the OBR’s September CPI forecast (receipts Table 4.19 in the October 2026 EFO, the CPI used to uprate tax thresholds), or Q3 CPI (economy Table 1.7) in years that table does not cover;

• May-July earnings: Q2 average earnings growth (economy Table 1.6). The OBR does not forecast the ONS AWE series; its measure is wages and salaries per employee, and Q2 is the quarter nearest May to July.

The State Pension triple lock consumes both statutory inputs. The shared indices.earnings_uprating series also projects the Pension Credit standard minimum guarantee, with a zero floor on earnings growth. See Pension Credit uprating for its Savings Credit and pension-age Housing Benefit projections and reform behaviour.

With the October 2026 EFO the baseline rises are 3.9% in April 2027 (the published May-July 2026 earnings), 3.4% in April 2028 (September 2027 CPI), 2.5% in April 2029 to 2031 and 2.6% in April 2032, as in the OBR’s triple lock row (EFO Table A.3). After the EFO horizon the gap is zero, so the inputs follow calendar-year growth. Smooth forecasts pay the higher of earnings, CPI and 2.5% each year, so the baseline has none of the extra cost the triple lock builds up when September CPI and May-July earnings take turns to spike; the OBR’s long-run projections add 0.56 percentage points a year over earnings for it (Fiscal risks and sustainability, July 2026). To capture it, supply simulated paths of the statutory inputs, as below.

policyengine_uk/utils/import_obr_forecasts.py regenerates the gaps with the calendar-year series, from the EFO economy and receipts tables (--receipts-file or --receipts-url). After editing yoy_growth.yaml by hand, run it with --gaps-only.

Scenarios¶

A macro scenario that edits calendar-year growth moves the forecast inputs one for one, and so the triple lock. Calendar-year series are keyed to 1 January, and a bare year (or year:YYYY-01-01:1) names that calendar year: 5% earnings growth in 2027 sets the May to July 2027 input and so the April 2028 rise. Apply it before the data load to project the data’s incomes with it too.

from policyengine_uk.model_api import Scenario

scenario = Scenario(
    parameter_changes={
        "gov.economic_assumptions.yoy_growth.obr.average_earnings": {
            "2027": 0.05,
        },
    },
    applied_before_data_load=True,
)

A scenario can also set the statutory inputs directly, for example from a model of the monthly series, since the triple lock pays out on how September CPI and May-July earnings differ from each other. A value replaces the forecast for that year only; a bare year names the fiscal year from 6 April, which contains both observation dates:

Scenario(
    parameter_changes={
        "gov.economic_assumptions.statutory_uprating_inputs.cpi_september": {
            "2027": 0.031,
        },
        "gov.economic_assumptions.statutory_uprating_inputs.awe_total_pay_may_july": {
            "2027": 0.024,
        },
    },
    applied_before_data_load=True,
)

These changes, and the reform levers below, work through Scenario(parameter_changes=...) or a reform= dictionary alike: both are written onto the parameters before the rates are built. A rate can also be set directly, as gov.economic_assumptions.yoy_growth.triple_lock or the statutory override triple_lock/outturn.yaml; either uprates the pension from that April.

Reform levers¶

• triple_lock/minimum_rate.yaml sets the floor. A double lock, the higher of earnings and CPI, is the floor set to 0 (or below 0 to allow cash cuts).

• triple_lock/include_earnings.yaml and triple_lock/include_inflation.yaml drop an element but keep the floor. A CPI link is include_earnings false with the floor at or below 0.

• triple_lock/active.yaml switches the triple lock off. The pension then rises by the statutory minimum from the review under the Social Security Administration Act 1992, section 150A: earnings growth, and nothing when earnings fall. The floor and the include flags no longer apply, and neither do the one-year changes to section 150A for April 2021 and April 2022.

• triple_lock/earnings_path_guarantee.yaml (off under current law) keeps the pension on or above an earnings path started from its level in the year before the guarantee first applies. With include_earnings false, it models a plan that drops the earnings element of the triple lock but keeps the pension in line with earnings over time. The plan announced on 29 September 2026 gave no formula; one reading, from April 2030, is:

Scenario(
    parameter_changes={
        "gov.dwp.state_pension.triple_lock.include_earnings": {
            "year:2030-01-01:100": False,
        },
        "gov.dwp.state_pension.triple_lock.earnings_path_guarantee": {
            "year:2030-01-01:100": True,
        },
    },
    applied_before_data_load=True,
)

Each guaranteed year, the rise is the highest of the triple lock elements still included and the rise needed to reach the earnings path, rounded up to 0.1 percentage points.

Known aggregate gap (#1632)¶

The model’s State Pension covers UK private households: the Family Resources Survey covers private households only, not nursing homes and other communal establishments. DWP’s State Pension spending covers Great Britain and UK State Pensions paid to people living abroad, but not Northern Ireland, whose State Pension the Department for Communities pays. DWP’s Spring Forecast 2026 is consistent with the OBR’s March 2026 forecast. From 2026-27 the two differ by about £2m a year. The OBR’s figures are £1.4bn higher in 2024-25, which the OBR records as outturn, and £0.1bn higher in 2025-26.

The table compares full microsimulation runs on the enhanced FRS 2024-25 (policyengine-uk-data-private 1.57.4) with DWP’s spending less its payments abroad.

The model also includes Northern Ireland, which DWP’s figures do not, so the like-for-like gap is larger by Northern Ireland’s State Pension.

These runs predate the fix for #1941, which uprates additional pensions and protected payments by September CPI instead of the triple lock. The fix leaves the data year unchanged. In projected years, when the full rates rise faster than prices, it lowers the model’s State Pension and widens the gap to the forecasts in this table.

The data year. In 2024-25 the model has 11.36m State Pension recipients averaging £201.6 a week, for the UK. The FRS’s own grossed figures for Great Britain are 11.53m recipients averaging £212 a week, and DWP’s administrative figures are 11.88m and £212 (FRS methodology tables M.6a and M.6b, which cover Great Britain). The FRS’s grossed estimate for the UK, with benefit amounts linked to DWP records, is £130.6bn, against £135.1bn from administrative data. So most of the model’s £16bn shortfall against administrative data for the UK arises in building the enhanced FRS, not in the survey. For FRS respondents, state_pension_reported is the FRS benefits table’s weekly State Pension amount times 52 (policyengine-uk-data’s datasets/frs.py). On the rows the enhanced FRS adds from the Survey of Personal Incomes, it is imputed (datasets/imputations/frs_only.py). The shortfall is tracked in policyengine-uk-data#493.

Projected years. The gap widens after the data year for two reasons, tracked in #1929:

• Caseload. Survey ages are held fixed in projected years and household weights grow with total population (policyengine_uk/data/uprating_indices.yaml), so the pension-age population keeps the data year’s age structure. From 2025-26 to 2030-31 the model’s State Pension recipients fall 3.0%, as State Pension age rises to 67, while DWP’s caseload less those paid abroad rises 4.8%.

• Awards. Each record keeps its reported amount, the part up to the full rate uprated by the flat rate and the part above it by September CPI, including records whose cohort moves from basic to new State Pension. In the runs behind the table above, which predate the fix for #1941 and uprated the part above the full rate by the flat rate too, the model’s State Pension per recipient grew 17.0% over those years; uprating that part by September CPI makes it grow more slowly. DWP’s spending per recipient, less those paid abroad, grows 18.3%, as its new State Pension spending grows from £56.1bn to £102.4bn and its basic State Pension spending falls from £66.7bn to £57.8bn.

Until the fix for #1921, additional_state_pension paid the band between the flat rates twice for records moving from basic to new State Pension cohorts (see Components above): £0.8bn in 2025-26, rising to £6.8bn in 2030-31. That made the model’s State Pension per recipient grow 21.8%, faster than DWP’s, and hid part of the widening.

What’s been fixed¶

What’s still open¶

• The Category D retirement pension, for people over 80 with no other retirement pension or one below its rate (SSCBA 1992 s.78(3)), is not modelled: #2339.

• The data year’s shortfall in the enhanced FRS: policyengine-uk-data#493.

• The pension-age population and new-cohort awards in projected years: #1929.

Both are part of #1632 and the broader UK pipeline-alignment tracker #1621.

References¶

• DWP, New State Pension and Basic State Pension user-facing pages.

• GOV.UK, Check your State Pension forecast.

• Pensions Act 2014 — introduces the New State Pension and the BASIC / NEW boundary.

• Social Security Contributions and Benefits Act 1992, Part 2 — primary statute for the basic scheme.

• OBR, Economic and fiscal outlook, March 2026: detailed forecast tables, expenditure, table 4.9, “State pension”.

• DWP, Benefit expenditure and caseload tables 2026: outturn and forecast, Spring Forecast 2026, “State Pension” sheet: total, paid outside the UK, components and caseload.

• DWP, Family Resources Survey, integrating administrative data for benefits: tables, sheet 16, State Pension: admin-linked survey and administrative estimates, 2024-25.

• DWP, Family Resources Survey 2024-25: methodology and standard error tables, tables M.6a and M.6b: State Pension recipients and weekly amounts, FRS against administrative data.

• DWP, Family Resources Survey 2024-25: background information and methodology, section 4.1, for the survey’s coverage of private households.

• House of Commons Library, State Pension triple lock — context for the triple-lock parameters.