Overview

• The projected uplift, driven by recent wage growth, would raise the full new state pension by about £562 from £11,973 to roughly £12,535 a year, or around £241 a week.
• With the personal income tax allowance frozen at £12,570, the higher payment would sit just £35 below the threshold, increasing the risk that retirees pay tax on the state pension alone, analysts warn.
• Baroness Ros Altmann and campaigners say increases in essentials are outpacing incomes, with food prices up 5.1% year on year to August and October’s energy cap adding £25 to annual bills.
• The basic state pension is also set to rise, from £9,175 to about £9,606, though experts caution the real-terms benefit will be limited by persistent household cost pressures.
• Advisers urge benefits checks and tax‑efficient planning such as using ISAs and timing withdrawals, as debate continues over the triple lock’s long‑term sustainability despite the government’s pledge to keep it this parliament.