Following the latest wages data from the Office for National Statistics (ONS), millions of pensioners are likely to see their state pension rise by more than £500 from April.
Under the triple lock guarantee, the state pension increases each year by the highest of 2.5 percent, inflation, or average earnings growth. With wages, including bonuses, rising by 4.7 percent in the three months to July, this figure is expected to set the 2025/26 increase.
For those on the new flat-rate pension, introduced in April 2016, payments are expected to rise to £241.05 a week, equal to £12,534.60 a year, an increase of £561.60. For those who retired before April 2016, the old basic state pension is set to increase to £184.75 a week, or £9,607 a year, up by £431.60.
Almost 13 million people claim the state pension, though not all receive the full rate as eligibility depends on National Insurance contributions.
Former pensions minister, Sir Steve Webb, noted that the new state pension is edging closer to the frozen personal tax allowance of £12,570, which will remain fixed until 2028.
The state pension is the second-largest area of Government spending, behind health. The triple lock, introduced in 2011, has come under scrutiny for its rising cost. However, Chancellor Rachel Reeves has confirmed it will remain in place until the end of the current parliament.
Unemployment also rose to 4.7 percent in July, the highest since 2021.
Talk to us about your finances.
