Andy Burnham has committed to handing state pensioners born after 1951 an extra £331 next year. Under the Triple Lock, which Mr Burnham has committed to, the £241.30 rate of the full new state pension will rise by a minimum of 2.5 per cent.
Details of the Pension Increase
That would be £6 a week - or £313 across a 52-week year. The Labour Party government has pledged to keep the Triple Lock metric, with the next uprating coming in April 2027. By then, Mr Burnham will have spent nine months in office ahead of becoming Prime Minister this week.
Burnham's Commitment to the Triple Lock
Ahead of taking over in Number 10, Mr Burnham confirmed his commitment to the Triple Lock measure. Responding to a question asking whether it was time to abolish the pledge, or at least have a conversation about its removal, Burnham said the manifesto commitment remained. “I appreciate there’s a lot of debate about this but it is important that the commitment in the manifesto stands,” he said.
The Labour manifesto states that the party will “retain the triple lock for the state pension”. The triple lock raises the state pension annually by whichever is highest out of inflation, average earnings for working people, or 2.5 per cent.
Tax Implications for Pensioners
Receipt of the Basic or New State Pension is counted as taxable income, but provided your total income from all sources is below the tax-free Personal Allowance £12,570, then you have no tax to pay. As a result, some pensioners who rely solely on the State Pension may, for the first time, find themselves within the scope of income tax. The Government has indicated that it intends to prevent this outcome, at least for the duration of the current parliament.
Political Context
Mr Burnham becomes PM on Monday morning after he succeeded Sir Keir Starmer as Labour leader on Friday following him stepping down.
