Over eight million people will miss out on a £500 state pension boost under Andy Burnham's triple lock rise next April. The Labour Party government Prime Minister has vowed to keep the triple lock during his premiership.
Triple lock rise details for April 2027
It will mean state pension payments rise by 4.1 per cent, if wage growth, which is currently higher than inflation (the second metric used) and the flat 2.5 per cent (the third metric used) determines the rise from April 2027. But not everybody will get the same increase.
Under DWP rules, there are two state pensions: the full and basic. The full is worth over £3,000 more - and will see payments hiked from £241 to £251 or so, under the 4.1 per cent uplift. It will work out at around a £515 increase.
Eight million on older state pension system
But there are approximately 8.2 million people in the UK claiming the pre-2016 old State Pension (which includes the basic State Pension), out of a total 13.2 million overall state pension claimants. The remaining 5 million are on the newer State Pension system. These older retirees won't get the full whack of £515 - instead seeing their payments rise a year by around £300.
Former pension minister Sir Steve Webb explains: “The triple lock pledge applies only to the headline rate of the new state pension and the old basic pension. Your overall increase will depend on how much of your pension comes from the element that is covered by the triple lock promise.”
Old state pension and additional payments
The old state pension is paid to people who reached the state pension age before April 6, 2016 and is currently worth £184.90 a week. On top they may also receive additional state pension, which is based on earnings and National Insurance contributions.
While wage growth is 4.1 per cent, inflation is currently tracking at around 2.9 per cent. The triple lock mechanism compares wage growth, inflation, and a flat 2.5 per cent rate, using the highest figure to determine the annual increase.
