{"id":218161,"date":"2025-10-22T15:38:10","date_gmt":"2025-10-22T15:38:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/218161\/"},"modified":"2025-10-22T15:38:10","modified_gmt":"2025-10-22T15:38:10","slug":"state-pension-to-rise-4-8-as-inflation-holds-steady","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/218161\/","title":{"rendered":"State pension to rise 4.8% as inflation holds steady"},"content":{"rendered":"

Inflation remained unchanged at 3.8 per cent in September, meaning the state pension will rise by 4.8 per cent in line with July\u2019s earnings growth figure under the triple lock.<\/p>\n

In April 2026, the state pension will get bumped up by the July earnings growth figure of 4.8 per cent.<\/p>\n

Therefore the full \u2018new\u2019 state pension should increase from \u00a3230.25 per week to \u00a3241.30 per week.<\/p>\n

While the \u2018old\u2019 state pension should increase from \u00a3176.45 per week to \u00a3184.90 per week.<\/p>\n

Currently the personal allowance is frozen at \u00a312,570 with AJ Bell estimating the state pension will exceed this by 2027-28, if it remains frozen.<\/p>\n

\"\"<\/p>\n

Graph showing the gradual growth of state pension against the personal allowance\u00a9 AJ Bell<\/p>\n

Rachel Vahey, head of public policy at AJ Bell, warned the government could come under mounting pressure to address the sustainability of the triple lock.<\/p>\n

The government previously committed to keeping the triple lock.<\/p>\n

She said: \u201cRemoving the freeze on the personal allowance would come at significant cost to the Treasury at a time when the chancellor\u2019s fiscal headroom is already strained at best.<\/p>\n

\u201cWhile an overhaul of the triple lock would come with huge political risk before the next general election.\u201d<\/p>\n

Andrew Tully, technical services director at Nucleus, said the increase to state pension means many more will pay income tax given the ongoing freeze to the personal allowance.<\/p>\n

\u201cWhile the headline state pension increases by the triple lock, other parts of the state pension such as SERPS\/S2P, the graduated pension, protected payments, and benefits for deferring, will go up by CPI which may be lower than earnings,\u201d he explained.<\/p>\n

\u201cThe government has announced a review of the state pension age which will consider if and when state pension age moves to 68 and beyond. <\/p>\n

\u201cHowever rather than focus solely on state pension age, we need to consider the future of our state pension system as a whole. <\/p>\n

\u201cAs well as state pension ages, this wider debate should consider a suitable level of state benefit, the future of the triple lock, differing life expectancy across the UK, and support for those below state pension age who aren\u2019t able to work.\u201d<\/p>\n

alina.khan@ft.com<\/p>\n","protected":false},"excerpt":{"rendered":"Inflation remained unchanged at 3.8 per cent in September, meaning the state pension will rise by 4.8 per…\n","protected":false},"author":2,"featured_media":218162,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4176,10477,4174,4175,8183,56,54,55],"class_list":["post-218161","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-ft-adviser","tag-personal-finance","tag-personalfinance","tag-triple-lock","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/218161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=218161"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/218161\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/218162"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=218161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=218161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=218161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}