The hike will take the basic State Pension, which is for women born before 1953, and men before 1951, from £184.90 per week up to £192.10
Andy Burnham £7 weekly plan for state pensioners born before 1953 to be confirmed
The September inflation figure of 3.5% has seemingly confirmed average earnings growth of 3.9% will determine the April 2027 Department for Work and Pensions (DWP) State Pension increase. The 3.9 per cent hike will take the full new State Pension above £13,000 a year for the first time.
John Healey will confirm the uprating in his Autumn Budget on Wednesday. It marks the Labour Party Chancellor’s first Autumn Budget since his appointment from Andy Burnham. Mr Burnham has promised the triple lock will stay for 2027, and won’t be adjusted until 2030.
It means we look on course for a 3.9 per cent hike – as this is the largest of the three triple lock metrics. The hike will take the basic State Pension, which is for women born before 1953, and men before 1951, from £184.90 per week up to £192.10.
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That marks a £7.20 weekly increase. Catherine Foot, Director of the Standard Life Centre for the Future of Retirement, said: “The increase in the value of the State Pension will be welcome news for millions of pensioners, but this year’s Retirement Voice findings point to deepening uncertainty among those who aren’t yet retired.
“The triple lock has played an important role in improving pensioner living standards over the past 15 years, yet growing questions about its long-term affordability and fairness between generations have now resulted in a proposed change of direction from 2030.
“The announced change will reduce public spending, but the Government will need to keep a close eye on pensioner living standards, particularly among those most reliant on the State Pension.
“Whatever mechanism is used to increase it in future, maintaining confidence in the State Pension as the foundation of most people’s retirement income will be essential.
“This is a particularly important moment for Generation X. Many are approaching retirement with undersaving challenges and less access to defined benefit pensions than earlier generations.
“Working longer can improve retirement outcomes and will be part of the answer, but it may not be realistic for everyone, particularly those affected by ill health, caring responsibilities or limited opportunities in the labour market.
“The change to the triple lock therefore needs to be considered alongside broader decisions on the future State Pension age and the Pensions Commission’s work on retirement adequacy, including wider action to increase automatic enrolment contributions.
“The goal must be a system that remains sustainable and affordable while giving people clarity and a firm foundation on which to plan.”