State pensioners throughout the UK are set to receive hundreds of pounds additional income next year. his follows confirmation of the state pension rate for 2026/27 under the triple lock arrangement.
A 4.7% increase will elevate the annual rate to £12,535 for those receiving the new state pension – representing a boost of £562.
The enhanced payments will start from next April, reports Birmingham Live. Read the biggest stories in Wales first by signing up to our daily newsletter here.
The triple lock guarantees the pension increases annually in accordance with whichever is the highest amongst inflation, wage growth and 2.5%.
Wages have risen by 4.7% and this will dictate the forthcoming increase.
However, it will push more elderly Britons towards paying income tax for the first time due to frozen tax thresholds.
There have also been suggestions the triple lock will become unviable as it drives pension payments up excessively.
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Pension specialists 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.”
However, the spokesperson cautioned: “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.
“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 further commented: “The Government has pledged to maintain the triple lock until the end of this Parliament, but beyond that, nothing is guaranteed.”