A boost to payments for millions of Brits has been confirmedRichard Guttridge Agenda Editor and Liv Clarke Tourism writer
11:47, 28 Sep 2025Updated 11:47, 28 Sep 2025
State pensioners are set to recieve a boost in payments next year (Image: inyourArea)
Millions of Brits will receive a boost to their state pensions next year. The state pension rate for 2026/27 has been confirmed under the triple lock terms.
This means state pensioners will receive a 4.7% increase next year, pushing the annual rate up to £12,535 – an increase of £562. The boost to payments will kick in from next April.
Under the triple lock pensions rise every year in line with whatever is highest out of inflation, wage growth and 2.5%, BirminghamLive reports.
The latest increase has been determined by wages which are up 4.7%. But it will push more older Brits towards paying income tax for the first time because of frozen tax bands.
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There have also been claims the triple lock will become unsustainable because it pushes up pension payments too much.
The boost will come in effect from April next year
Pension experts at Spencer Churchill Claims Advice said: “From April 2026, the state pension will rise by 4.7%, taking the full new state pension to about £241 a week, or just over £12,500 a year.
“That’s a meaningful increase, especially for those relying heavily on it to cover everyday expenses.”
But the spokesperson warned: “The rise also brings the state pension close to the frozen personal tax allowance, meaning more retirees could end up paying income tax on their pension alone.
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“Pension rises look good on paper, but frozen personal allowances mean retirees don’t always feel the full benefiit.
“This is called fiscal drag – where an increase in pension income simply pushes people into tax thresholds.
“Many pensioners who only rely on the state pension will soon find themselves paying tax for the first time, while those with workplace or private pensions are already there.”
They added: “The Government has pledged to maintain the triple lock until the end of this Parliament, but beyond that, nothing is guaranteed.”