Those on the full basic state pension would see their weekly payments rise from £176.45 to £187, resulting in an additional £548.60 per year.
State pensioners born before 1953 set for free £549 boost from DWP
State pensioners born before 1953 could be handed £549 in a Department for Work and Pensions (DWP) boost thanks to the Triple Lock next year. The metric of the Triple Lock currently most noteworthy is inflation, which is running at close to six per cent.
Those on the full basic state pension would see their weekly payments rise from £176.45 to £187, resulting in an additional £548.60 per year.
The State Pension increases in April each year, based on a system known as the triple lock. This means the increase will match the highest of these three percentages: how much general living costs have risen by (inflation), based on the previous September’s Consumer Price Index (CPI) , the average wage increase from May to July of the previous year, or 2.5%.
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The triple lock applies to most State Pension payments, but there are two exceptions that increase in line with CPI instead: Additional State Pension – part of the old State Pension that you might get if you reached pension age before 6 April 2016 – and any extra amount you recieve if you decided to delay taking your State Pension – known as deferring.
Money Helper advises: “The triple lock affects anyone living in the UK who gets the State Pension, including under the old system before April 2016.
“You might also get an annual increase if you live abroad, depending on where you live. You can check the full country list at GOV.UK. You don’t have to do anything to benefit from the triple lock.
“The increase is automatically calculated and applied for you on, or just after, 6 April.” It adds: “There are currently no plans to end the triple lock, but there are frequent debates on how affordable it is to continue. For example, State Pension increased 10.1% in 2023, 8.5% in 2024 and 4.1% in 2025, costing billions.
“Legally, the government is only required to increase State Pension in line with the average increase in wages. This means they could decide to scrap the triple lock in the future. But, as this would be a very political decision, it’s unlikely be an overnight change.
“Before the triple lock started in April 2011, the annual increase only tracked inflation, or average wage increases before 1980.”