UK Government Faces £100 Million Increase in State Pension Costs

Revised wage growth figures trigger higher pension payouts, adding pressure on public finances amid cost of living challenges.

The state pension increase is set to be determined by a 4.1% wage growth, surpassing previous estimates and resulting in an additional £100 million cost for the government.
The rise will elevate the new state pension to nearly £12,000 annually, approaching the tax-free personal allowance threshold.
Many pensioners will not receive the full increase due to partial pension entitlements, with some receiving less than £100 weekly.
The government plans to limit winter fuel payments to only those on means-tested benefits, reducing recipients from 11.4 million to 1.5 million.
Economic pressures persist as inflation impacts living costs, and the Labour government prepares to address financial challenges in the upcoming budget.