Overview
- ONS figures set the triple lock to use 4.8% earnings growth over 3.8% inflation, with the uprating due for confirmation in the Autumn Budget on November 26.
- A 4.8% increase would take the full new state pension to £241.30 a week, about £12,547 a year, and lift the basic state pension to £184.90 a week, subject to Budget approval.
- The projected rise would leave roughly £36 below the £12,570 personal allowance, prompting warnings that more pensioners could fall into income tax if they have additional income.
- Treasury minister Dan Tomlinson stated that pensioners with only the state pension will not pay income tax in 2025/26 because the personal allowance will still be higher.
- Fidelity International reports the UK replaces about 22% of pre-retirement income from the state, the lowest in the G7, with lower pension spending as a share of GDP and growing concerns over triple lock affordability as the pension age moves toward 67 by March 2028.