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State pension to rise by over £400 next year
The Treasury expects the state pension to rise by more than £400 a year next year, which would bring the full state pension for those on the new system to around £12,000 annually. This increase is part of the government’s commitment to the triple lock, which ensures that the state pension increases each year by the highest of inflation, average earnings growth, or 2.5%.
For those who retired before 2016, the basic state pension is expected to rise by at least £300, bringing it to around £9,000 per year. The final decision on the exact increase will be made by the pensions secretary, Liz Kendall, ahead of the Budget next month.
This significant boost follows a £900 increase last year, and it reflects the government’s continued support for the triple lock, a commitment that has become a key election promise from all major political parties.