State pension set to rise by £460 next year
Getty ImagesThe new full state pension is expected to rise by £460 a year from April, following the release of the latest official wages data.
Total pay in the May to July period rose at an annual rate of 4%, according to the Office for National Statistics (ONS).
Under the arrangement called the “triple lock”, the state pension goes up each year by either 2.5%, inflation, or average earnings – whichever is the highest figure.
The news comes as the government faces a backlash over its decision to cut the winter fuel payment for most pensioners.
More than nine million pensioners will no longer be eligible for up to £300 this winter after the Chancellor, Rachel Reeves, announced the introduction of means-testing for the payments.
- the full, new flat-rate state pension (for those who reached state pension age after April 2016) is expected to increase to £230.05 a week. That will take it to £11,962.60 a year, a rise of £460 compared with now.
- the full, old basic state pension (for those who reached state pension age before April 2016) is expected to go up to £176.30 a week. That will take it to £9,167.60 a year, a rise of £353.60 compared with now.
Not all pensioners get the full state pension.
The final figure will be decided by the Work and Pensions Secretary, Liz Kendall, around the time of the Budget and may be different if official earnings figures are revised in a month.
The increase in total pay – which includes bonuses – measured by the ONS showed a marked slowdown from the previous month’s figure of 4.5%.
The ONS said this was due to one-off bonuses paid to NHS and civil service workers in June and July 2023 not being replicated this year.
Growth in regular pay – which excludes bonuses – also slowed to 5.1%.
The unemployment rate in the May to July period slipped to 4.1%, the lowest since the three months to January 2024.
