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UK State Pension Set to Rise Under Triple Lock, Lifting Full New Rate to About £12,534

A freeze to the £12,570 personal allowance means the higher payout could push more retirees into income tax.

Overview

  • Chancellor Rachel Reeves reiterated the triple lock and will set out the uprating in Wednesday’s Budget.
  • The full New State Pension is projected to rise to about £241.30 a week, roughly £12,534 a year, an increase of £561.
  • Those on the Old/Basic State Pension are expected to receive about £184.90 a week, around £9,614 a year, about £2,920 less than recipients on the new rate.
  • With the personal allowance frozen at £12,570 until 2028, the higher payout could bring more pensioners into income tax.
  • Around 13 million people stand to gain from the uplift, as the triple lock delivers a 4.8% increase based on recent earnings growth.