Millions of State Pension recipients are on course for a pay rise next April, with the full new State Pension set to increase by nearly £490 over the year.
The increase is 3.9% under the Triple Lock, after Chancellor John Healey confirmed the figures in his first Budget.
This follows official figures from the Office for National Statistics (ONS), which showed average earnings growth of 3.9% between May and July. This was higher than September's Consumer Price Index (CPI) inflation rate of 3.5% and the Triple Lock's minimum increase of 2.5%.
The Triple Lock means the State Pension rises each April by whichever is highest out of average earnings growth, inflation or 2.5%.
The figures point to a weekly increase of £9.40 for people receiving the full new State Pension, taking payments from £241.30 to around £250.70.
That would mean an extra £488.80 over a full year, with the annual payment rising from £12,547.60 to approximately £13,036.40.
The full new State Pension would therefore pass £13,000 a year for the first time.
But, it's important to say that pensioners aged 75 and over are on the older basic system of pension, which is still lower.
How much will the State Pension rise by?
The expected 3.9% increase would also apply to the full basic State Pension, paid to people who reached State Pension age before April 2016.
The projected rates for the 2027/28 financial year are:
Full new State Pension
- Weekly: £250.70, up from £241.30
- Four-weekly: £1,002.80, up from £965.20
- Annual: £13,036.40, up from £12,547.60
Full basic State Pension
- Weekly: £192.10, up from £184.90
- Four-weekly: £768.40, up from £739.60
- Annual: £9,989.20, up from £9,614.80
These figures are projections based on a 3.9% rise. The actual amounts will depend on the Government's formal uprating decision and rounding.
What is the full new state pension?
It is important to remember that not everyone receives the full State Pension. The amount paid depends on an individual's National Insurance record and other entitlement rules.
People are able to claim the new State Pension when they reach State Pension age if they are:
- a man born on or after 6 April 1951
- a woman born on or after 6 April 1953
Older pensioners get the basic State Pension, and some also get Additional State Pension.
Recommended reading:
- Gas standing charges to be scrapped in major Budget energy bill shake-up
- Martin Lewis highlights cheaper way to dry washing as households face higher bills
- Minimum wage to increase to £13.20 an hour as John Healey announces Budget pay boost
What happens to the Triple Lock?
Labour has pledged to maintain the Triple Lock for the duration of the current Parliament. Changes to the State Pension uprating system are scheduled to take effect from April 2030.
The latest earnings figures mean the 2027 increase is expected to be driven by wage growth rather than inflation.
September's CPI inflation rate was 3.5%, up from 3.1% in August. ONS chief economist Grant Fitzner said increased fuel prices were again the main driver, with diesel prices reaching their highest level since July 2022.
Share