State pension: Like rise in 2027 is revealedThe projected increase in state pension is lower than expected due to a fall in wage growth from 4.2% to 3.9%The state pension is set to rise by 3.9% by next April, according to new figures PA WireMegan Howe, News Reporter1 minute ago
COMMENTS
The state pension is expected to rise by 3.9% next April, after new figures were released by the Office for National Statistics (ONS) on Tuesday.
Under the triple lock, the full new state pension is on course to increase from around £241 to £250 a week — taking the annual payment to just over £13,000.
The increase applies to people who reached state pension age after April 2016.
It comes as the government has committed to keeping the triple lock in place for the whole of this Parliament. Under the system, the state pension rises each year by whichever is highest whether that is average earnings growth, inflation, or by 2.5%.
The projected increase is slightly lower than previously expected. A month ago, forecasts suggested the state pension could rise to around £251 a week.
But the latest ONS figures show that total wage growth, including bonuses, has slowed to 3.9%, down from 4.2% in the three months to June.
As earnings growth is currently the highest of the three triple-lock measures, it is expected to determine next April’s increase, though none of this is confirmed yet.
The final figure depends on September’s inflation reading, due out on October 21, which could in theory overtake wage growth as the higher number.
Pensioners on the older basic state pension will also see a smaller increase than had been expected.
Unless inflation rises sharply, earnings growth is expected to determine next April’s increase, with the Department for Work and Pensions confirming the final rate once the inflation figures are published.
MORE ABOUT
State PensionOffice for National StatisticsDepartment For Work And Pensions