DWP Extra £694 for State Pensioners: Many UK pensioners are unaware of a simple way to increase their retirement income—by delaying their State Pension claim. This option can provide a yearly bonus of up to £694 just for waiting an additional 12 months to begin receiving payments. For those who don’t urgently need the income, this delay can result in a more generous pension over time.
The DWP Extra £694 for State Pensioners is a result of deferring the new State Pension after reaching the eligibility age. Men born after April 6, 1951, and women born after April 6, 1953, are entitled to this increase if they reach the State Pension age of 66 and choose to postpone their claim. This article explores who qualifies, how the system works, and how much extra income pensioners can earn through this method.
DWP Extra £694 for State Pensioners
The DWP Extra £694 for State Pensioners refers to the added amount pensioners can receive annually if they choose to delay their pension by a full year. Deferring your pension increases the weekly payment by 1% for every 9 weeks you delay. Over a 52-week period, this totals around 5.8%—which equals £694.20 extra per year based on the current full pension rate of £230.25 per week.
To be eligible for this increase, you must qualify for the new State Pension system and reach your pension age on or after April 6, 2016. You also need a minimum of 10 qualifying years of National Insurance contributions. To receive the full State Pension—and the full deferral bonus—you must have at least 35 qualifying years.
Overview Table: DWP Extra £694 for State Pensioners
| Criteria / Detail | Information |
| Focus Program | DWP Pension Deferral Bonus |
| Maximum Extra Amount per Year | £694.20 |
| Weekly Increase After 1-Year Deferral | £13.35 |
| Deferral Bonus Rate | 1% every 9 weeks (approx. 5.8% yearly) |
| Current Full Weekly State Pension (2025) | £230.25 |
| Required National Insurance Years (Full) | 35 years |
| Minimum Qualifying Years | 10 years |
| Applicable To | Men born after April 6, 1951 and women born after April 6, 1953 |
| State Pension Age (2025) | 66 years |
What Happens If You Delay Your Pension?
When you reach the State Pension age, the Department for Work and Pensions (DWP) sends you a letter around two months before your birthday. This letter asks whether you wish to start receiving your pension or defer it. If you do nothing, your pension will be automatically delayed until you apply for it.
The longer you delay, the higher your eventual weekly pension becomes. Every 9-week delay increases your payment by 1%, making a full-year delay worth about £13.35 extra per week. This option is particularly helpful for those who are still working at 66 or have other sources of income and don’t immediately need their State Pension.
How Much Has the State Pension Increased?
As of April 2025, the UK government has increased the full new State Pension to £230.25 per week. This is a 4.1% rise from the previous rate of £221.20, resulting in an annual increase of £470 for full recipients. Similarly, the basic State Pension rose from £169.50 to £176.45 per week, an annual bump of around £360.
These increases, combined with the deferral bonus, can significantly improve the financial standing of pensioners over time. For example, delaying your claim while the pension amount is rising means you not only get more money per week but also a larger increase percentage-wise in the following years.
Who Can Benefit the Most from Deferring?
The DWP Extra £694 for State Pensioners is most beneficial for those who meet the full eligibility requirements and are financially secure enough to wait. This includes:
- People who are still working past the age of 66.
- Pensioners with other savings or private pensions to rely on.
- Those in good health and expecting to live longer, increasing the long-term benefits of a higher weekly pension.
Even if you don’t qualify for the full pension due to fewer than 35 years of contributions, you can still benefit. The increase is proportionate to your entitlement, meaning you still receive a bonus relative to your weekly rate.
Government’s Commitment to Pensioners
The UK government, under the leadership of the Minister for Pensions, has made significant efforts to support retirees. In 2025, an additional £7.84 billion was allocated to the State Pension budget. There’s also an ongoing push to increase Pension Credit uptake and support healthcare access for older adults, with a £26 billion investment in the NHS.
These actions reflect a broader strategy to ensure pensioners have financial security and access to essential services in later life. Choosing to defer your pension aligns well with this strategy and offers personal financial benefits for those who can afford to delay.
Two Essential Things to Remember
- Automatic Deferral: If you don’t respond to the DWP’s letter about your pension, it will automatically be delayed. You can claim it any time afterward.
- Partial Contributions Still Matter: Even if you don’t qualify for the full State Pension, deferring still increases your payments based on your individual amount.
FAQs About DWP Extra £694 for State Pensioners
1. How can pensioners get the extra £694?
By deferring their State Pension for one full year after reaching the pension age of 66, pensioners can receive around £694 more annually.
2. Who is eligible to defer their State Pension?
Men born on or after April 6, 1951, and women born on or after April 6, 1953, who haven’t claimed their State Pension yet.
3. How much does the pension increase per year of deferral?
It increases by approximately 5.8% annually, which is about £13.35 more per week if you get the full State Pension.
4. Do I need to inform the DWP to defer my pension?
No. If you don’t reply to the pension start letter, the DWP will automatically defer your pension until you choose to claim it.
5. What is the current weekly State Pension in 2025?
The full new State Pension is £230.25 per week as of April 2025, or roughly £11,973 per year.
