State pensioners born before 1950 are set to receive an £834 monthly payment increase under the triple lock system, according to Andy Burnham. The boost, based on current wage growth figures of 4.1%, will apply to the basic state pension for older retirees in the 2026/27 financial year.
Triple Lock Drives Pension Increases for 2026/27
Pension payments will rise for millions of over-65s next April, with latest figures indicating how much payments could increase by for 2026/27. The UK state pension is split into two types with two different rates: full and basic. Under a revamp a decade ago, all retirees from 2016 onwards went onto the new full version, while all older pensioners remained on the basic pension, which is lower than the full pension.
Older seniors may also receive top-up payments to make up for the gap. Pension rates each year are determined by the Government's triple lock, which ensures an increase in line with whatever is highest out of inflation, wage growth, or 2.5%.
Wage Growth at 4.1% Indicates Payment Levels
Details of payments for 2027/28 are set to be confirmed in the autumn. As it stands, wage growth looks set to be the highest of the three figures once again, currently sitting at 4.1%. The Government relies on wages figures from May to July, so this provides a good indication of how pensions might rise. The wage growth figure is higher than the July inflation rate of 2.9%.
This may lead to more criticism of the triple lock policy, following several above-inflation hikes to pensions over recent years.
Full and Basic Pension Breakdown
Were the 4.1% figure to remain the same, the full state pension would rise by £515 to £13,062, which works out to £1,088 a month. The basic pension for older retirees would climb by £395 to £10,010, equating to £834 a month. These figures apply to state pensioners born before 1950, who remain on the basic pension scheme.
