Millions of pensioners in line for cash boost
Pension payments will rise under the triple lock.
Millions of state pensioners have been promised an increase to payments of around £1,900 over the next few years.
Ministers said the pledge was part of the state pension triple lock policy, which guarantees annual rises to payments.
Under the terms of the triple lock, payments increase to match whatever is highest out of inflation, wage growth or 2.5%.
READ MORE: State pensioners born before 1959 urged to claim £1,384
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While the exact amounts aren’t known until near the end of each year, ministers have estimated annual rises will be worth around £1,900 extra to state pensioners by 2029.
It comes amid criticism of the frozen personal allowance tax band, which is resulting in more pensioners being dragged into paying income tax.
James Murray, Exchequer Secretary to the Treasury, said recently: “In 2025-26 the personal allowance will continue to exceed the basic and full new state pension.
“That means that pensioners whose sole income is the full new state pension or basic state pension without any increments will not pay any income tax.
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“The state pension continues to be the foundation of support available to pensioners, backed by the Government’s commitment to the triple lock.
“This year, over 12 million pensioners have benefited from a 4.1% increase to their basic or new state pension, which means that those on the full new state pension will get an additional £470.
“Over the course of this Parliament, the yearly amount of the full new state pension is currently projected to go up by around £1,900, based on the latest forecast from the Office for Budget Responsibility.
“The Government also support pensioners through a range of other means, including free eye tests, NHS prescriptions and bus passes. For pensioners who are eligible for means-tested support, we provide pension credit and housing benefit.”
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