Thousands of older state pensioners across the UK are set to receive an unexpected boost to their weekly income, with payments rising to nearly £184 per week under government plans.
Triple Lock Delivers Pension Boost
The Department for Work and Pensions has confirmed that the Basic State Pension will increase by nearly five per cent for those born before 1953, specifically affecting women who qualify under this category. This significant hike comes as part of the government's Triple Lock commitment, which guarantees state pension increases each year.
Under the new rates scheduled for implementation in April 2026, the full basic State Pension will see weekly payments rise to £184.90 – up from the current weekly amount of £176.45. This represents a substantial increase for pensioners who rely on this income for their daily living expenses.
Martin Lewis Explains the Numbers
Consumer champion and financial expert Martin Lewis has provided clarity on the upcoming changes. "The State Pension is set to rise 4.8% next April," he explained. "We know this as it is 'triple locked' – meaning it rises by the higher of 2.5%, inflation, or the rise in average earnings. The key figure for earnings to July came in at 4.8%, making it likely to be the highest of the three measures."
Lewis broke down the exact figures that pensioners can expect:
- NEW state pension: Rising from £230.25 to £241.30 per week
- OLD state pension (for retirees pre-April 2016): Increasing from £176.45 to £184.90 per week
He also highlighted an important consequence of these increases: "This will take someone on the full new State Pension to £12,548 per year, only £22 below the frozen personal allowance. Since State Pension income is taxable, this means without any question the following year, those on the full new State Pension with no other income will for the first time pay tax on it."
Final Figures Still Pending
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, provided additional context to the announcement. "This has consequences for people getting State Pension who can expect the amount they get to go up ever so slightly from next April," she noted.
"Those on the full new state pension could be on course for £241.30 per week rather than £241.05 while those on the full basic state pension will see their weekly payment rise to £184.90 rather than £184.75."
Morrissey emphasised that inflation figures due next week will provide the final piece of the Triple Lock puzzle. However, with inflation currently at 3.8%, it appears likely that average wages will be the figure used to determine the final increase percentage.
The upcoming changes represent a significant financial boost for pensioners who have been struggling with rising living costs, though the tax implications noted by Martin Lewis mean some recipients may need to plan for additional tax liabilities in the future.
