Millions of state pensioners across the UK are set to receive a significant payment increase following Chancellor Rachel Reeves' Autumn Budget announcement.
Budget Confirms Triple Lock Commitment
In a major move for retirees, the Labour government has confirmed its commitment to the state pension Triple Lock, ensuring payments will rise by 4.8 per cent next April. Chancellor Rachel Reeves used her Budget speech to confirm the policy will remain in place for the duration of this Parliament.
The Triple Lock mechanism guarantees state pension increases align with the highest of three measures: inflation, average earnings growth, or 2.5 per cent.
What the Figures Mean for Pensioners
The full new state pension, currently paying £230.25 per week (£11,973 annually), will rise to £241.30 per week - equivalent to £12,547.60 per year. This represents an annual increase of £575 for those receiving the full new state pension.
Meanwhile, recipients of the full basic state pension will see their payments increase from £176.45 per week (£9,175.40 annually) to £184.90 per week, providing an extra £439.40 per year.
Government and Expert Reaction
Announcing the increase, Chancellor Rachel Reeves stated: "Whether it's our commitment to the triple lock or to rebuilding our NHS to cut waiting lists, we're supporting pensioners to give them the security in retirement they deserve."
However, some financial experts have raised concerns about the long-term sustainability of the Triple Lock policy. Gerard Boon, managing director of Boon Brokers, commented: "It is increasingly becoming less practical and ultimately unsustainable, pushing pension income ahead of wage growth. With an ageing population, more taxpayer money will be channelled into pensions."
Boon suggested that struggling pensioners should explore additional support including Pension Credit, council tax reductions, and energy support schemes to help manage living costs.
