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·
2w ago

State Pension Likely to Rise 3.9% Next April

ONS wage data points to earnings as the probable driver and final confirmation will follow September CPI on 21 October and the DWP Autumn Statement.

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Overview

  • ONS data published Tuesday shows average weekly pay grew 3.9% in the three months to July, making earnings the strongest candidate under the triple lock rule.
  • Under the triple lock the government boosts pensions by the highest of wage growth, September CPI inflation, or 2.5%, so a confirmed 3.9% rise would set the increase.
  • If a 3.9% increase is enacted next April the full new state pension would rise by about £9.40 a week from £241.30 to roughly £250.70 per week.
  • Final determination depends on official September CPI, due to be published on 21 October, and the Department for Work and Pensions will confirm rates in the Autumn Statement.
  • The expected rise would raise costs for public finances and push many pensioners above the income tax threshold, a point that has renewed debate over the long-term affordability of the triple lock.