Exciting news for pensioners! From April next year, the State Pension is set for a nice boost. Thanks to the triple lock mechanism, pensions will rise in line with the earnings growth measure of 4.8%, since it surpasses the September inflation rate of 3.8%. If you’re on the full new State Pension, you’ll get £241.30 weekly, while the maximum basic State Pension rises to £184.90.
The triple lock guarantees that pensions increase annually, aligning with the highest measure between average earnings growth, inflation, or a 2.5% uplift. A significant rise for those with the full new State Pension means an annual total of £12,547 by April 2026. However, it’s worth noting that it leaves just £36 before hitting the Personal Allowance threshold, which could see more pensioners paying tax.
UK Government has frozen the Personal Allowance at £12,570 until 2028, but Labour had promised to maintain the triple lock during this Parliament. We’ll need to wait for the official word from the Secretary of State for Work and Pensions and upcoming Autumn Budget, where Chancellor Rachel Reeves will confirm these changes. While the overall rise is welcome news for pensioners, it also highlights the cost pressures tomorrow’s workers will bear, as each 1% pension bump costs around £1.1 billion annually.
Keep an eye on November 26, when the Chancellor is set to reveal more about these plans in the Autumn Budget. This news might lead to further discussions on adjusting the State Pension age as more people live into longer lifespans. Stay tuned for all the updates!