Under the Triple Lock<\/a> the New and Basic State Pensions increase each year in-line with whichever is the highest between the average annual earnings growth from May to July (4.7%), Consumer Price Index (CPI) inflation rate in the year to September, or 2.5 per cent. Additional State Pension elements and deferred State Pensions rise each year with the September CPI figure.<\/p>\n The CPI figure for August was 3.8 per cent and pension experts now say it looks highly unlikely that CPI will be higher than the earnings growth<\/a> rate.<\/p>\n READ MORE: Pensioners on disability benefits may be due an extra \u00a383 every week<\/a>READ MORE: Married people over State Pension age could boost annual income by \u00a34,300<\/a><\/p>\n This means people on the full New State Pension could see payments rise by over \u00a3570 next year under the earnings growth. An uplift of 4.8 per cent would increase the full New State Pension to \u00a3241.30 per week and \u00a3184.90 for those on the maximum Basic State Pension.<\/p>\n It\u2019s important to remember that the amount someone receives depends on their National Insurance contributions. To receive the full, new State Pension you need around 35 years\u2019 worth, but this may differ if you were \u2018contracted out\u2019.<\/a><\/p>\n If September\u2019s inflation figure matches the Bank of England\u2019s projection of 4 per cent, the State Pension would increase by around \u00a3574 from April 2026 – lifting it to \u00a312,547 per year.<\/p>\n The projected uprating leaves just \u00a323 before the Personal Allowance income threshold of \u00a312,570 is exceeded which would see more pensioners pay tax in retirement.<\/p>\n The Labour Government confirmed earlier this year that the Personal Allowance will remain frozen at \u00a312,570 until April 2028.<\/p>\n State Pension uprating predictions for 2026\/27<\/p>\n The CPI for September will be published on October 22 and is forecast to be 4 per cent.<\/p>\n Chancellor Rachel Reeves will confirm the annual uprating at the Autumn Budget on November 26. An uprating of 4.8 per cent on the current State Pension would see people receive the following amounts.<\/p>\n Full New State Pension<\/strong><\/p>\n Full Basic State Pension<\/strong><\/p>\n Commenting on the projected uprating, Derence Lee, Chief Finance Officer at Shepherds Friendly<\/a> said: “Due to the extremely high levels of inflation the UK has experienced since 2020, State Pensions have been increasing at a rate that some experts believe to be unsustainable in the long term.<\/p>\n \u201cWith pensions expected to surpass the frozen tax-free allowance limit, which will remain unchanged by the Uk Government until 2028, more retirees will be pushed into the tax-paying bracket. As a result, pensioners should begin to take into account that they may soon need to pay income tax on their pensions should no changes be made to current status-quo.<\/p>\n \u201cWhile the Triple Lock has been helpful in ensuring retirees\u2019 incomes keep up with the cost of living, taxing pensioners could have significant financial implications, particularly for those who rely heavily on their pensions to cover essential living costs and make ends meet.\u201d<\/p>\n State Pension and tax<\/p>\n Guidance on GOV.UK<\/a> states: \u201cYou pay tax if your total annual income adds up to more than your Personal Allowance. Find out about your Personal Allowance and Income Tax rates.<\/p>\n Your total income could include:<\/strong><\/p>\n Check if you have to pay tax on your pension<\/p>\n Before you can check, you will need to know:<\/p>\n You cannot use this tool if you get:<\/strong><\/p>\n Use this online tool at GOV.UK<\/a> to check if you have to pay tax on your pension.<\/p>\n The full guide to tax when you get a pension can be found on GOV.UK here.<\/a><\/p>\n Join the conversation on our Money Saving Scotland Facebook group<\/a> for money-saving tips, the latest State Pension and benefits news, energy bill advice and cost of living updates.<\/p>\n Sign up to our Record Money newsletter and get the top stories sent to your inbox daily from Monday to Friday with a special cost of living edition every Thursday – sign up here<\/a>.<\/p>\n You can also follow us on X<\/strong> (formerly Twitter) @Recordmoney_<\/a> for regular updates throughout the day or get money news alerts on your phone by joining our Daily Record Money WhatsApp community<\/a>.<\/p>\n\n
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