STORY
The state pension is likely to increase by 3.9 per cent in April 2027 following the publication of the latest earnings figures. Under the triple lock, pensions rise by the highest of average earnings growth, September inflation or 2.5 per cent.
Average total pay increased by 3.9 per cent during the three months to July. If that remains the highest of the three measures, the full new state pension would rise from £241.30 to approximately £250.70 a week, taking its annual value above £13,000. The full basic state pension would increase from £184.90 to approximately £192.10 a week.
The precise increase will not be known until September’s inflation figure has been published and the Government formally confirms the uprating. A pension exceeding the current £12,570 personal allowance could ordinarily create an income tax liability, although the Government has said pensioners whose only income is the basic or new state pension will not have to pay small amounts of tax through simple assessment from 2027.