The full new state pension will rise by 3.9% from April 6, 2027, adding around £490 a year to payments, after the increase was confirmed in the Budget. The rise takes the full weekly rate to approximately £250.70, up from the current £241.30.
The announcement was made by Secretary of State for Pensions Pat McFadden, who said the increase is in line with average weekly earnings growth.
Triple lock commitment
The triple lock system requires the Department for Work and Pensions (DWP) to raise state pension payments each year in line with inflation, wage growth, or 2.5%, whichever is greatest. The new state pension, introduced in 2016, applies to all men born after April 5, 1951 and women born after April 5, 1953.
Prime Minister Andy Burnham has pledged to maintain the triple lock for the next three years, despite proposals to replace it with a 'double lock' system from 2030 that would exclude wage growth.
Confirmation in the Commons
Speaking in the House of Commons, McFadden said: "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."
Retirement savings advice
Helen Morrissey, head of financial planning for Hargreaves Lansdown, said the increase may still fall short of an 'adequate retirement' for some. She advised that boosting contributions during pay increases or promotions, or taking advantage of employer match contributions, could make a big difference over time.
Morrissey added: "If you're worried that you've neglected your pension, then it's important to say that it's never too late to make a difference to your retirement. Take stock of what you have, and if you have any extra money to contribute, it can still make a huge difference. You can usually access money in a pension from age 55 (rising to 57 in 2028)."
