State pensioners born after 1951 could be in line for a windfall, with a potential £657 boost on the cards thanks to the Triple Lock systemJames Rodger Content Editor, Kieran Isgin Money & Lifestyle writer and Kate Lally
15:08, 13 Jul 2025
Many pensioners could be hundreds of pounds better off(Image: Iuliia Burmistrova via Getty Images)
State pensioners born after 1951 could be set for a welcome financial windfall, with a potential £657 boost on the horizon thanks to the Triple Lock arrangement. Those entitled to the complete new State Pension for the 2025/26 tax year stand to receive £11,973 per annum, equivalent to £230.25 weekly.
With the Triple Lock being linked to a substantial 5.5% earnings rise, weekly state pension disbursements could climb to £242.90. This translates to approximately £972 across a four-week period and culminates in an attractive annual total of £12,630.80.
The Triple Lock system represents the DWP’s commitment to enhance pensions annually according to whichever proves highest among three benchmarks: the average yearly wage increase recorded between May and July, September’s CPI figure, or a guaranteed 2.5% rate, reports the Mirror.
This development emerges as Britain’s economy experienced a marginal 0.1% contraction in growth during May, though the Office for National Statistics (ONS) highlighted encouraging indicators, with GDP climbing 0.5% throughout the March to May 2025 period, marginally surpassing the anticipated 0.4%.
MHA’s Professor Joe Nellis commented: “This is a far cry from the strong growth in the first quarter of the year when a surge in exports and a robust performance in the services sector placed the UK among the G7’s top performers. Growth over the first half of the year is now expected to be modest.
“Despite a more positive outlook for the remainder of the year, this presents a challenge to the Chancellor – her fiscal headroom remains limited by high levels of public borrowing and debt and her spending plans are heavily reliant on kickstarting the economy.
“Just as last year, we now wait tentatively for the Autumn Budget to find out how the Chancellor aims to solve her fiscal problems.”
Mr Nellis added: “Something must change – she must either cut spending, increase borrowing, or raise taxes. We expect a squeeze on unprotected Government budgets to cut spending, but the recent rebellion in the Labour Party against the welfare reform bill shows that major spending cuts may be too politically dangerous for the Government.
“The OBR’s July report highlighted the intense burden that the triple lock on the state pension places on the UK economy – demographic and economic shifts have made this policy difficult to uphold, but any attempt to undo it would move the Government into treacherous waters.”