The state pension will rise next April
At present, the full new state pension is £230.25 a week(Image: VioletaStoimenova via Getty Images)
Millions of pensioners are set to see their state pension boosted by as much as £538 from April – courtesy of the Government’s triple lock pledge. The system guarantees that pensions will climb annually by whichever is greatest: inflation, average wage increases, or 2.5 per cent.
With earnings growth currently surpassing inflation, this looks likely to determine next year’s rise. Data from the Office for National Statistics reveals salaries in the year to April–June jumped by 4.6%. The crucial figure for the triple lock relates to May–July – expected next month – but specialists suggest the result is already clear.
Currently, the full new state pension stands at £230.25 weekly, or £11,973 annually. An increase of 4.0 – 4.5% would push it to between £12,451 and £12,512 – an additional £478.92 to £538.79 yearly.
Millions of pensioners are set to see their state pension boosted by as much as £538 from April(Image: Hispanolistic via Getty Images)
“This isn’t the crunch month for the triple lock, but we’re not far off now. Total pay is up 4.6 per cent in the year to April–June, and it’s the May–July figure that counts for the triple lock,” explained Sarah Coles, head of personal finance at Hargreaves Lansdown.
“A rise of 4.0 to 4.5% means the state pension would be between £12,451 and £12,512. This would bring it within touching distance of the personal allowance – so anyone with even a very modest personal pension income could end up paying income tax.”
The standard personal allowance – the amount you can earn before paying income tax – is £12,570. This means that someone on the full state pension would only need an additional £59 a year from other sources such as a private pension, savings, or rental income before paying basic-rate tax.
The Treasury will confirm the final increase in the autumn, with Parliament needing to approve it in March before it comes into effect in April 2026.
“The Bank of England expects inflation to ease in the coming months, so that by the time we get to the state pension rise in April next year, this increase might be well ahead of annual price rises at the time,” Ms Coles continued.
“Of course, this is only part of the picture. Inflation has been particularly focused on household bills and food prices, which pensioners on lower incomes spend a larger proportion of their income on. It means many of those who rely heavily on the state pension will be holding their breath for the rise in the spring.”
AT A GLANCE
Current full new state pension: £230.25 a week / £11,973 a year
Expected rise (April 2026): 4.0 – 4.5%
Increase in cash terms: £478.92 – £538.79 a year
New annual total: £12,451 – £12,512
Personal allowance (tax-free threshold): £12,570
Extra income before tax kicks in: Just £59 if on full state pension
Final decision: Autumn announcement, confirmed by Parliament in March