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UK state pension likely to rise by £488 under triple lock

newsSep 15, 202618337

The state pension is expected to rise by £488 a year from April, taking the full flat-rate pension to about £250.70 a week or £13,036.40 a year, based on 3.9% average wage growth, the BBC reports. The increase comes under the triple lock, which guarantees rises by average wage growth, inflation, or 2.5% whichever is highest, and Labour has pledged to keep the policy until 2029. Almost 13 million people receive the state pension and a rise to just over £13,000 would push the flat-rate pension above the personal tax allowance of £12,570, making some pensioners liable for income tax. Pensioner groups say many older people still face cost of living pressures including high energy bills, while forecasts show state pension spending is already £154 billion this year and could rise by a further £600 million a year by 2029-30. Ruth Curdice, chief executive of the Resolution Foundation, called the policy "crazy" and warned of a "ratchet effect" boosting pensioners' living standards faster than typical workers, and Jonathan Cribb, deputy director at the Institute for Fiscal Studies, said cumulative spending increases are substantial but uncertain. Business Secretary Jonathan Reynolds declined to confirm whether pensioners who rely solely on the state pension would be exempted from paying income tax despite earlier government assurances.

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