CASH BOOST: The state pension rate for 2026/27 has been confirmed under the terms of the triple lock (Image: Getty)
Millions of pensioners across the UK will see their state pension rise by more than £500 next year after the Government confirmed the latest increase under the triple lock. From April 2026, the full new state pension will rise by 4.7%. That’s an increase of £562, bringing the annual payment to £12,535, or £241 per week.
The triple lock guarantees that pensions go up each year in line with whichever is highest out of inflation, average earnings or 2.5%. With wage growth currently at 4.7%, this figure will set next year’s increase.
While the rise offers welcome relief to retirees facing rising living costs, experts warn that frozen tax thresholds mean many pensioners will lose out through ‘fiscal drag’, reports Birmingham Live.
MORE ON PENSIONS
A spokesperson for Spencer Churchill Claims Advice said: “That’s a meaningful increase, especially for those relying heavily on the state pension to cover everyday expenses. But 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 benefit. This is called fiscal drag – where an increase in pension income simply pushes people into tax thresholds.”
They added: “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.”
The Government has committed to keeping the triple lock until the end of the current Parliament, but questions remain over whether it can be sustained in the long term.
READ NEXT