Millions of state pensioners are set to receive a significant income boost after the Chancellor confirmed an above-inflation increase. Labour's Rachel Reeves used her budget to announce that both the basic and new state pensions will rise by 4.8% from next April.
What the pension increase means for you
The rise, which honours the government's triple lock commitment, translates into a substantial cash uplift for retirees. Chancellor Reeves stated that the change means an extra £575 per year for those on the full new state pension. For pensioners receiving the older, basic state pension, the annual increase will be slightly lower at £440 per year.
This automatic uprating mechanism, known as the triple lock, guarantees that the state pension increases by the highest of three measures: average earnings growth, inflation, or 2.5%. The 4.8% figure is derived from average earnings data, ensuring pensioners' incomes keep pace with working households.
A budget announcement met with fierce opposition
The confirmation of the pension rise, however, was delivered against a backdrop of intense political conflict. The announcement formed part of a budget that immediately drew scathing criticism from the Conservative opposition.
Conservative Party leader Kemi Badenoch launched a blistering attack on the Chancellor and her fiscal plan. She labelled the budget a "total humiliation" for Ms Reeves and accused the Labour government of breaking its promises on taxation and economic stability.
"Last year she put up taxes by £40bn, the biggest tax rise in British history," Badenoch told MPs. "She promised that she wouldn't be back for more. She swore it was a one-off... Today, she has broken every single one of those promises."
Taxes, welfare, and a deepening political divide
The core of the opposition's criticism centred on how the government is funding its spending commitments, including the pension increase. Badenoch accused Labour of "hiking taxes to pay for welfare", claiming the budget would raise benefits for around 560,000 families by an average of £5,000.
"They are hiking taxes on workers, pensioners and savers to pay for handouts to keep their backbenchers quiet," she asserted. Badenoch argued that the Chancellor should have focused on reducing welfare spending and encouraging people into work instead of implementing a series of new taxes.
In a personal jab, she also mocked Ms Reeves's frequent reference to being the UK's first female Chancellor. "After this budget," Badenoch claimed, "she will go down as the country's worst ever." She concluded that the government had lost all credibility and that public trust in the Chancellor had been irreparably damaged.
Despite the political storm, for millions of pensioners across the UK, the key takeaway remains the confirmed £575 annual increase to their state pension income, a rise administered by the Department for Work and Pensions (DWP) that will take effect from the start of the new financial year.
