State pensioners could receive higher weekly payments from next April, with current figures pointing to a 3.9% rise under the triple lock. That would take the full basic State Pension from £184.90 to £192.10 a week, while the full new State Pension would rise from £241.30 to £250.70.
The increase would be determined by the triple lock, which raises State Pension rates according to the highest of three measures: inflation, average wage growth or 2.5%. According to BirminghamLive, average wage growth currently stands at 3.9%, above both the 2.5% minimum and the inflation figure cited in the report.
Wage Growth Currently Leads the Triple Lock Calculation
The triple lock determines how much the Department for Work and Pensions increases State Pension payments each year. On the figures reported so far, average wage growth is the measure most likely to determine the next increase.
According to BirminghamLive, a 3.9% increase would add £7.20 a week to the full basic State Pension, taking the payment to £192.10. Over a year, that represents an additional £374 for somebody receiving the full amount. People receiving the full new State Pension would see a larger weekly increase. Their payment would rise by £9.40, from the current £241.30 a week to £250.70.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said Office for National Statistics figures showed average wage growth at 3.9%. She noted that the relevant inflation figure had yet to be published, while inflation currently stood at 2.9%.
“We may have just over a month to wait until the relevant inflation figure is published, but it currently stands at 2.9%, so unless there’s a real surge it seems likely that the average wage figure will be used,” Morrissey said.
She added that the higher payments would support pensioner incomes, while noting that the State Pension remained focused on covering basic costs. Her comments also stressed the role of wider pension planning for people seeking a higher standard of living in retirement.
Frozen Tax Allowance Raises Questions for Some Pensioners
Higher State Pension payments could also leave some pensioners facing income tax for the first time because the personal tax allowance remains frozen. The issue particularly affects people whose income comes mainly, or entirely, from the State Pension.
According to BirminghamLive, the government plans to prevent pensioners who only slightly exceed the personal allowance from facing the administrative burden of paying small amounts of tax during this Parliament.
Labour cabinet member Torsten Bell said the approach followed a commitment made at Budget 2025. “In line with the commitment made at Budget 2025, pensioners who only just exceed the personal allowance will not have the administrative burden of paying small amounts of tax in this Parliament,” he said.
Bell added that the Chancellor would provide further information at the Budget on how the commitment would be delivered. For pensioners, the immediate focus remains on the figures used under the triple lock. Wage growth is currently the highest of the three measures cited in the report, while the relevant inflation figure is still to come. If the 3.9% wage figure is used, the new weekly rates would apply from next April.
