Older state pensioners will receive a confirmed £375 annual increase to their basic state pension from next April, the Secretary of State for Pensions has announced. The boost follows the triple lock being maintained for at least three more years in the Autumn Budget.
Triple Lock Increase Confirmed
The new state pension will rise by around £490, while the basic state pension will increase by around £375, according to Pat McFadden, the Secretary of State for Pensions. The triple lock mechanism increases pensions by the highest of inflation, wage growth, or a flat 2.5%.
Despite plans to axe the triple lock in 2030, it will still increase pension payments in 2027, 2028, and 2029. Older state pensioners are classed as those who reached state pension age before April 6, 2016.
Statutory Review Details
Delivering a statutory review for Parliament following the Budget, Pat McFadden wrote: "I am pleased to announce that the basic and full rate of the new state pensions will be increased by 3.9%, in line with the increase in average weekly earnings in the year to May-July 2026."
He added: "This delivers on our triple lock commitment throughout this Parliament to increase these rates in line with the highest of growth in prices, growth in earnings or 2.5%. From April, the full annual rate of the new state pension will increase by around £490. The full annual rate of the basic state pension will increase by around £375."
The boosts represent the maximum amount that the state pension will increase for a state pensioner with a full National Insurance record.
New Pensions Tax Allowance
Chancellor John Healey has announced the new Pensions Tax Allowance, a policy first introduced by Rachel Reeves. Under the allowance, state pensioners receiving the full new state pension will not pay tax on it, despite the amount reaching £13,036 per year, which exceeds the £12,570 Personal Allowance tax threshold. Any income under £13,036 will be tax free, including the pension, savings, property income, and salary.
