Under the triple-lock mechanism, the state pension increases every April by whatever is the highest
Under the triple-lock mechanism, the state pension increases every April by whatever is the highest
State pensioners across the UK will be handed a £575 boost from April 2026 thanks to the Department for Work and Pensions or DWP Triple Lock. But older retirees born before 1953 will miss out because they are on the Basic rate.
Pensioners born before 1951, if they’re men, or 1953, if they’re women, only get £176.45 per week, which will rise to £184.90 per week, or £439.40 extra per year. It means older state pensioners will get £136 less.
Under the triple-lock mechanism, the state pension increases every April by whatever is the highest – the previous September’s inflation figure, annual earnings growth, or 2.5 per cent.
READ MORE New rule in UK supermarkets ‘poorly thought through’ and will push up prices
The earnings growth figure was confirmed as 4.8 per cent earlier this month, and this is now set to be the relevant figure because September’s inflation number is lower.
The Government has committed to honouring the triple lock until at least 2029, and will confirm the figure at next month’s Budget.
Adam Cole, retirement specialist at Quilter, said: “With the personal allowance frozen until at least 2028, we’re approaching the point where even those receiving only the full new state pension could become liable for income tax.
“By April 2027, a minimum 2.5 per cent annual uplift means many pensioners may start receiving tax payment requests via simple assessment (if they don’t have PAYE income). This will come as a surprise to many who might never have had to go through a process like this.”
Rachel Vahey, head of public policy at AJ Bell, said: “Next April’s rise will put the state pension above £12,000 for the first time and within inches of the frozen personal allowance.
“This poses a significant conundrum for Rachel Reeves and the Treasury. If, as is expected, the triple lock sees the state pension increase above the personal allowance of £12,570 in April 2027.
“Pensions minister Torsten Bell recently ruled out scrapping the triple lock guarantee, but as the state pension grows ever closer to the frozen personal allowance threshold, it could be that the Government is finally forced to address the question of how much the state pension should really offer, at what age, and how it can increase payments sustainably each year.”