Great news for state pensioners! A bigger boost is on the horizon for those born before 1959, thanks to an upward revision in wage growth by the Office for National Statistics (ONS). The anticipated increase could see new state pension rates rise to around £241.30 per week from April 2026, bringing annual payments to over £12,000 for the first time ever!
The DWP’s decision aligns with the pension’s Triple Lock promise, ensuring pensioners benefit from the highest of inflation, wage growth, or 2.5%. With inflation predicted to stay below the current wage growth of 4.8%, it looks like the Triple Lock will push pension payouts to new heights.
But this raise poses a dilemma for the government. With pension payments potentially surpassing the frozen personal allowance of £12,570 by April 2027, questions loom about future policy directions.
On a festive note, remember that those eligible for the State Pension could also receive a £10 Christmas Bonus. While this amount hasn’t changed since its introduction in 1972, it’s a small token to boost holiday cheer.
Stay tuned for final numbers, with inflation data dropping next week. For now, it’s looking like state pensioners are in for a welcome increase to help with the rising cost of living. 🎉✨