In 2025, a significant update to the Department for Work and Pensions (DWP) rules is set to benefit thousands of pensioners across the UK. The new regulations around inherited state pensions—particularly those tied to the State Earnings-Related Pension Scheme (SERPS)—allow many surviving spouses or civil partners to receive an extra boost. In some cases, this can be as much as £20,000 per year added to their pension income.
The DWP New Rule affects individuals who inherited part of their partner’s state pension after the introduction of the new state pension in 2016. It enables more people to qualify for annual payments ranging from a few hundred to over £11,000, with exceptional cases possibly reaching £20,000. These changes could greatly improve financial security for many older adults in 2025 and beyond.
DWP New Rule
This DWP New Rule centres on inherited SERPS—a benefit once awarded to those who paid National Insurance before the new state pension system. Now, surviving spouses and civil partners can claim part of their deceased partner’s pension, potentially receiving up to £11,356 per year if their partner reached pension age before April 2016. Combined with other entitlements, total inheritance may be even higher, approaching £20,000 in rare cases.
Inheritance Overview Table
| Feature | Details |
| Scheme Affected | State Earnings-Related Pension Scheme (SERPS) |
| Who Can Inherit | Surviving spouse/civil partner of deceased before/after 2016 pension age |
| Maximum Annual Inheritance | Up to £11,356 in 2024/25 (approximately £218/week) |
| High Inheritance Cases | In exceptional situations, totals may approach £20,000 yearly |
| Remarriage Impact | Remarriage before pension age disqualifies inheritance |
| How to Claim | Contact the Pension Service, check NI record |
| Current Recipients | Around 2 million, with 541,000 receiving over £5,000 annually |
What Is the Inherited State Pension Scheme (SERPS)?
The SERPS was part of the UK’s old state pension structure, giving extra earnings-related pension on top of the basic state pension. When a husband, wife, or civil partner passes away and leaves behind part of their SERPS entitlement, the surviving spouse may be entitled to inherit this portion.
Before 2016, many people built up significant SERPS entitlements through contributions. These are now available to survivors under the DWP New Rule, provided specific eligibility conditions are met.
Who Is Eligible to Inherit?
To benefit from this new rule, the survivor must meet certain conditions:
- Be a spouse or civil partner of someone who was receiving state pension or had completed NI contributions.
- The deceased partner must have reached state pension age—before or after April 6, 2016.
- You must have reached state pension age yourself (currently 66).
- You must not have remarried or entered a new civil partnership before reaching pension age.
These requirements mean that eligibility centres on timing—both your own and your partner’s—and marital status at the point of claiming.
How Much Can You Inherit?
Inheritance amounts vary based on when the deceased partner reached pension age and their NI history. For the 2024/25 financial year, the maximum is around £11,356 annually (about £218 weekly). However, some individuals may receive upwards of £20,000 in a year, combining multiple pension elements and lump sums.
Generally, larger amounts are tied to more substantial National Insurance contributions and reaching pension age well before 2016, before the switch to the new state pension system.
How to Inherit a State Pension
If you suspect you may be eligible, take these steps:
- Contact the Pension Service helpline to discuss your situation.
- Check the deceased partner’s NI record to verify their SERPS entitlements.
- If the deceased reached pension age before April 2016 but did not claim their basic pension, you may claim up to three months of backdated payments.
- If you haven’t yet reached state pension age, you can still plan ahead by checking eligibility online.
Applying is straightforward and does not require going through complex channels—just a phone call or form to the Pension Service is often enough to begin the inheritance process under this DWP New Rule.
What Happens After a Partner Dies?
After a partner passes, the state pension payments don’t end automatically. Families should:
- Inform the Pension Service to stop further payments to the deceased.
- Ask about any survivor entitlements, including SERPS, bereavement benefits, or pension credit.
- Be aware that failure to notify may result in overpayments that may need to be repaid.
Once retirement age is reached, survivors should formally claim their SERPS inheritance by contacting the authorities.
Important Considerations
While this rule is beneficial, some limitations apply:
- Remarriage or entering a new civil partnership before reaching pension age disqualifies you from inheriting.
- Inheritance amounts depend very much on the deceased partner’s NI history and pension age.
- For those whose partner reached state pension age after 2016, the new state pension system applies, and inheritance rules may differ.
It’s important to take early action and clarify your entitlement before circumstances like remarriage or age changes limit your claim.
Why This Rule Matters
The DWP New Rule corrects pension inequalities by ensuring that surviving partners receive benefits left to them. While many gain a modest monthly increase, others see substantial boosts—sometimes thousands of pounds a year—impacting their retirement quality and financial well-being.
For pensioners relying on fixed incomes, this inheritance may fill critical gaps in household budgets, health costs, or care needs.
What to Do Next
Those potentially eligible should:
- Review the deceased partner’s NI and pension records.
- Reach out to the Pension Service for advice and claim initiation.
- Avoid remarriage until pension age is reached, if eligible for inheritance.
- Monitor your pension income and check for entitlement notices from DWP.
Early action ensures you receive the full benefit set out under the DWP New Rule, helping support your financial security in retirement.
FAQs
Q1. What is the ‘DWP New Rule’?
A: It allows surviving spouses or civil partners to inherit part of their deceased partner’s SERPS pension if they meet eligibility conditions, potentially increasing their yearly income.
Q2. How much inheritance can I receive?
A: Up to £11,356 annually based on 2024/25 rates; in exceptional cases with multiple entitlements, totals may get close to £20,000.
Q3. Who qualifies for this inheritance?
A: Survivors who are at state pension age, whose deceased partner reached pension age either before or after 2016, and who have not remarried beforehand.
Q4. How do I apply?
A: Contact the Pension Service, check your NI record, and request inherited pension benefits under the SERPS rules.
Q5. What if I remarry before reaching pension age?
A: Remarriage or forming a new civil partnership before reaching pension age disqualifies you from inheriting the pension.
Final Thought
The DWP New Rule brings important changes that correct pension injustices and empower survivors with financial stability. You may be eligible to receive a significant inheritance from your partner’s pension—potentially thousands of pounds a year. Don’t overlook this opportunity—review your situation, claim what’s legally yours, and secure a stronger future in retirement.
