BIG BOOST: Older people are in line for a boost after official figures for wage increases in May-July were revised up from 4.7% to 4.8% (Image: E+/ Getty)

Millions of pensioners are on track for a bigger state pension increase next year than previously expected, thanks to an upward revision to key earnings data. The announcement comes after the Office for National Statistics (ONS) revised quarterly wage growth figures for the period ending in July from 4.7% to 4.8%, affecting the calculation of the Government’s triple lock policy.

This policy guarantees that the state pension rises each April by the highest of inflation, average earnings growth, or 2.5%. While official inflation figures for September are still awaited, the most recent data from August showed inflation at 3.8%, meaning wage growth is currently likely to be the main driver of next year’s pension rise.

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “This has consequences for people getting state pension who can expect the amount they get to go up ever so slightly from next April. Those on the full new state pension could see £241.30 per week rather than £241.05, while the full basic state pension would rise to £184.90 per week instead of £184.75.”

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Currently, the state pension stands at £230.25 per week, with the basic state pension at £176.45 per week, reports the Mirror. Former Pensions Minister Steve Webb, now a partner at pension consultants LCP, added: “We can be fairly certain that both the new and basic state pensions will rise by 4.8%. This will keep the headline rate below the income tax threshold for another year, but it’s expected to go above the threshold in 2027 if allowances don’t increase.”

The Labour Government has committed to maintaining the triple lock for this parliamentary term. Work and Pensions Secretary Pat McFadden said last month: “This Labour Government is committed to maintaining the Triple Lock for the course of this Parliament. By the end of the Parliament, this is estimated to mean a rise in the state pension of around £1,900 a year, a promise we made and fully intend to keep.”

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