Hundreds of thousands of older state pensioners across the UK are set to receive a smaller income increase than their younger counterparts, despite a significant Triple Lock boost scheduled for April 2026.
The Triple Lock Divide
While the Department for Work and Pensions (DWP) has confirmed a substantial £575 annual increase for many, a generational split means those on the older, basic state pension will get considerably less. The increase is driven by the Triple Lock mechanism, which dictates that the state pension rises each April by the highest of three figures: the previous September's inflation rate, annual earnings growth, or 2.5 per cent.
With earnings growth confirmed at 4.8 per cent—higher than September's inflation—this is the figure that will be used for the 2026 uplift. The government has committed to upholding the Triple Lock until at least 2029, with the final figure to be confirmed in next month's Budget.
Who Misses Out and By How Much?
The key differentiator is which state pension scheme a retiree is on. Pensioners born before 1951 (men) or 1953 (women) typically receive the basic state pension. Their weekly payment will rise from £176.45 to £184.90.
This amounts to an extra £439.40 per year. While an increase, it is £136 less than the £575 boost that those on the full new state pension will enjoy. This disparity highlights the two-tier system affecting Britain's retirees.
The Looming Tax Trap for Pensioners
Experts are warning that the steady rise of the state pension is creating a new problem for retirees: an unexpected tax bill. Adam Cole, a retirement specialist at Quilter, explained the coming issue.
“With the personal allowance frozen until at least 2028, we’re approaching the point where even those receiving only the full new state pension could become liable for income tax,” he said.
He further cautioned that by April 2027, continued uplifts could mean many pensioners start receiving tax payment requests, a process that will be unfamiliar and surprising to those who have never dealt with it before.
Rachel Vahey, head of public policy at AJ Bell, echoed these concerns, noting that next April's rise will push the state pension above £12,000 for the first time, bringing it alarmingly close to the frozen personal allowance of £12,570.
“This poses a significant conundrum for Rachel Reeves and the Treasury,” Vahey stated. “If, as is expected, the triple lock sees the state pension increase above the personal allowance in April 2027, the Government is finally forced to address the question of how much the state pension should really offer, at what age, and how it can increase payments sustainably each year.”
While the Pensions Minister has ruled out scrapping the Triple Lock, the converging figures of the state pension and the personal tax threshold are set to become a central financial and political challenge for the UK government.
