The state pension is set to increase by 3.9 per cent in April, delivering a £92 monthly boost for pensioners born before 1953, according to the Department for Work and Pensions (DWP) triple lock mechanism. The rise, driven by wage growth figures released today, will take monthly payments to £832, up from the current £740.
Triple lock triggered by wage growth
The triple lock, which guarantees the state pension rises in line with the highest of wage growth, inflation, or 2.5 per cent, looks set to be decided on wage growth after today's data revealed a 3.9 per cent increase. This marks a significant uplift for the oldest pensioners, who are eligible for the full state pension under the current system.
The announcement comes as the British Chambers of Commerce (BCC) published its Budget submission, outlining three priorities for the government. Alongside the NICs reform, the BCC is calling for a cost-reduction package and support for exporters, arguing that Andy Burnham and his chancellor John Healey should “use available fiscal headroom as a targeted pro-growth intervention” to “signal a decisive change of direction” across the economy.
BCC urges pro-growth measures
Shevaun Haviland, Director General of the BCC, last week pointed toward wider government support for firms looking to employ young people, sell products or services outside the UK, and renew a skills drive. She emphasised the need for immediate action, stating: “We need to see immediate action on helping young people into work, cutting business rates and energy costs, as well as helping to support more SMEs to export. Taken together, we believe these measures can help light the touch paper for stronger growth.”
Haviland also called on the chancellor to outline longer-term plans to boost investment, skills and productivity across the UK. “Our Chamber network is rooted in its communities; they know their local economies and want to work with government to make devolution a success,” she added. “Pro-growth choices have never been more urgent. The chancellor must 'back business, cut costs and deliver growth.”
Export support and US trade ties
In a related development, Michelle Ovens CBE, CEO of Small Business Britain, highlighted the importance of helping entrepreneurs trade with the United States. “Helping more entrepreneurs trade successfully with the US will not only strengthen UK-US trade ties but ultimately support growth across the UK economy,” she said.
Minister for trade Anas Sarwar echoed this sentiment, noting that “The US is our single biggest trading partner, and initiatives like Great British Pitch USA show how working hand-in-hand with industry helps ambitious UK entrepreneurs get in front of buyers, win new business, and turn export ambition into export success.” He concluded: “That's good for businesses, good for jobs, and good for growth in every postcode.”
The 3.9 per cent pension rise, combined with these business-focused proposals, signals a period of economic adjustment as the government balances fiscal headroom with growth priorities. The BCC's submission underscores the need for targeted interventions to support both pensioners and businesses in the coming fiscal year.
