Millions of state pensioners are set for a cash boost worth over £500 as the triple lock is expected to trigger another above-inflation rise next April. Under current wage growth figures, the full state pension would climb by £515 to £13,062 a year, working out to monthly payments of £1,088.
Triple Lock Rules Point to £515 Rise
The triple lock guarantees that the state pension increases each year in line with whichever is highest out of inflation, wage growth, or 2.5%. Wage growth is currently on course to be the highest of the three figures, sitting at 4.1% — considerably higher than the July inflation rate of 2.9%.
If the 4.1% figure holds, the full state pension — the version paid to everyone who has retired over the last decade — would rise by £515 to £13,062 next April. This is higher than the basic state pension paid to all other older pensioners, which is on course to climb by £395 to £10,010.
What Pensioners Can Expect
Details of exact amounts will be confirmed soon, but over-65s have already been given some idea of what to expect. Older retirees may also receive separate top-up payments to boost their incomes further.
Chancellor John Healey is expected to confirm the details at his first Budget in October. The announcement will follow recent guidance that some state pensioners are not eligible for Winter Fuel Payments even if they meet the age rule.
Triple Lock Under Scrutiny
Another above-inflation increase linked to wage growth will likely ramp up criticism of the triple lock. Opponents claim it is too expensive and that the state pension goes up too much each year.
The £515 rise for those born before 1960 reflects the ongoing impact of the triple lock mechanism, which continues to deliver increases above the rate of inflation.
