The Department for Work and Pensions (DWP) has confirmed that the State Pension will be adjusted in April 2026 under the terms of the Triple Lock policy. This annual mechanism determines the increase using a combination of wage growth, inflation, or a fixed minimum. Details remain subject to further economic indicators expected later this year.
According to figures cited by the Daily Record, recent wage data could play a decisive role in shaping the final adjustment. The anticipated change would apply to millions of pensioners across the UK and reflects broader commitments made by the current government on retirement income stability.
Labour Government Reaffirms Commitment to Triple Lock
Work and Pensions Secretary Pat McFadden has confirmed the government’s position on protecting the Triple Lock, a key manifesto promise. The mechanism ensures the State Pension increases each year by the highest of: average wage growth, inflation (CPI), or 2.5%.
He said:
This Labour Government is committed to maintaining the Triple Lock for the course of this Parliament. It is estimated that will mean a rise in the State Pension of around £1,900 a year by the end of the Parliament.
The DWP Secretary added:
That’s a commitment from the Labour Government to the UK’s pensioners.
Expected 4.7% Rise Based on Earnings Growth
The ONS recently reported that average earnings increased by 4.7% in the period from May to July 2025. If this remains higher than September’s CPI figure, this will be the measure used to calculate the State Pension increase from April 2026.
An uprating of 4.7% would raise weekly State Pension payments as follows:
- Full New State Pension: from £230.25 to £241.05 per week
- Full Basic State Pension: from £176.45 to £184.75 per week
This equates to:
- £964.20 every four weeks under the New State Pension
- £739.00 every four weeks under the Basic State Pension
- Annually: £12,534 for the New State Pension and £9,607 for the Basic State Pension
The official confirmation of these rates will be announced by Chancellor Rachel Reeves during the Autumn Budget on November 26.
CPI Inflation Data to Be Released in October
The Consumer Price Index (CPI) for September 2025—the second variable in the Triple Lock—will be published on October 22. The most recent CPI figure, for the year to August, was 3.8%. Forecasts suggest September’s CPI will be around 4%, which would make the 4.7% wage growth the most likely trigger for the increase.
Variation in How Increases Are Applied
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, commented on the current outlook:
State pensioners look on course to get a 4.7 per cent uplift in their State Pension next year as average wage growth remained robust.
However, the hike is not yet set in stone. We are awaiting the final piece of the triple lock puzzle – September’s inflation data to be published next month and if this surpasses 4.7 per cent then we could see an even bigger increase. However, given that inflation currently sits at 3.8 per cent it seems likely that wage growth will be the key figure here.
She added that the way the increases are applied can be confusing:
This causes some degree of complexity for pensioners.
Those on the New State Pension will receive the uplift but those on the Basic State Pension will only receive it on their main State Pension. Any further top ups such as the State Second Pension are usually uprated in line with inflation instead, so they won’t get the full benefit of the Triple Lock on their entire payment.
Tax Implications for Pensioners
The planned 4.7% increase could bring the annual New State Pension close to the basic income tax threshold.
For those on the full New State Pension it’s also worth saying that if they receive the 4.7 per cent uplift it takes their annual State Pension to around £12,535 per year which leaves them just a whisker under the threshold of paying basic rate tax – Morrissey explained.
This could mean that any additional income—from private pensions or part-time work—may push recipients into the taxable income bracket.
