UK State Pension Expected to Increase by £400 Next Year

Treasury calculations indicate a rise to £12,000 annually, but tax implications and winter fuel allowance cuts raise concerns.

• The state pension increase follows the triple lock mechanism, which ensures annual rises based on inflation, wage growth, or a minimum of 2.5%.
• Pre-2016 retirees eligible for the secondary state pension could see a £300 annual increase.
• The rise may push 300,000 pensioners into higher tax brackets due to the frozen personal allowance.
• The government faces backlash for cutting the winter fuel allowance for most pensioners, potentially reducing incomes by up to £200.
• The final decision on the pension increase will be made by Pensions Secretary Liz Kendall ahead of the October Budget.

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