Every autumn the chancellor sets a budget that includes how much pensions and benefits will be the following tax year, which starts on April 6 2026.

For those payments that are for people over State Pension Age and receive New State Pension, Basic State Pension or Pension Credit, they should see an increase tied to the Triple Lock.

How much will pensions go up by in 2026?

Given the government’s commitment to the Triple Lock, figures out last month revised upward the crucial figure for average earnings growth in the year to May-July from 4.7% estimated a month ago to 4.8%. 

This means that from the next tax year – pensions should go up by 4.8% on April 6 2026.

How much will pensions go up in 2026?

None of this is certain until confirmed in the budget later this month. But, given the Triple Lock pledge, the Basic State Pension should increase from £176.45 to £184.90 a week, or £9,175.40 to £9,614.80 a year, an increase of £439.40.

The New State Pension should go up from £230.25 to £241.30 a week, or from £11,973.00 to £12,547.60 a year, an increase of £574.60.

For pensioners who receive ‘additional state pension’ (also known as SERPS or State Second Pension) on top of their basic pension, this additional element will be increased in line with the CPI figure.

What is the Triple Lock?

Under the triple lock system, the state pension increases each April in line with whichever of three measures is the highest:

  1. inflation in the September of the previous year, using a measure called the Consumer Prices Index (CPI) – this year that is 3.8%
  2. the average increase in total wages across the UK for May to July of the previous year – this year that is 4.8%
  3. or 2.5%

The triple lock was introduced by the Conservative-Liberal Democrat coalition government in 2010.

It was designed to ensure the value of the state pension wasn’t overtaken by the increase in the cost of living or the incomes of working people.

Under this calculation, the state pension is set to rise by 4.8% next April.

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Former Pensions Minister Steve Webb, now a partner at pension consultants LCP, says: “There is an understandable focus on the ‘triple lock’ formula and what this means for the rate of the new state pension and the old basic pension, both of which are set to rise by 4.8% next year in line wit the growth in the average wage. 

“But more than six million people on the old state pension system also receive additional state pension where it is today’s CPI figure which will determine next year’s increase for that element of their pension.  

“With households continuing to face a high cost of living and further increases in bills such as Council Tax next year, these annual upratings are vital to make sure that pensioner living standards are protected against inflation.”