More than 13 million pensioners across the UK are set to see their State Pension payments increase by 3.9 per cent from April next year. The Office for National Statistics (ONS) confirmed on Wednesday that the Consumer Price Index (CPI) inflation rate for the year to September stood at 3.5 per cent.
This means the annual State Pension uprating under the Triple Lock will be calculated using the earnings growth figure of 3.9 per cent. Those receiving the full New State Pension will gain nearly £490 extra over the 2027/28 financial year, as reported by the Daily Record.
How the Triple Lock works
Under the Triple Lock mechanism, the New and Basic State Pensions rise each April in line with whichever is the highest of average annual earnings growth from May to July (3.9 per cent), CPI inflation in the year to September (3.5 per cent), or 2.5 per cent.
The Labour Government has pledged to retain the existing Triple Lock policy throughout this Parliament, with modifications to the uprating mechanism scheduled to come into force from April 2030. The new payment rates are anticipated to be formally announced by Chancellor John Healey at the Autumn Budget on October 28.
Expected payment rates from April 2027
The 3.9 per cent rise will see the full New State Pension climb from £241.30 to approximately £250.70 per week, while the full Basic State Pension would grow from £184.90 to roughly £192.10. This boost would push the full New State Pension above £13,000 annually for the first time.
It is important to note the Chancellor will confirm the annual uprating at the Autumn Budget on October 28. However, an uprating of 3.9 per cent would result in people receiving the following sums.
Full New State Pension
- Weekly: £250.70 (from £241.30)
- Four-weekly pay period: £1,002.80 (from £965.20)
- Annual amount: £13,036 (from £12,547)
Full Basic State Pension
- Weekly: £192.10 (from £184.90)
- Four-weekly pay period: £768.40 (from £739.60)
- Annual amount: £9,989 (from £9,614)
It is also worth bearing in mind that the amount an individual receives is determined by their National Insurance contribution record, meaning not everybody will qualify for the full rate.
