Starting April 6, all 13 million people receiving the state pension in the UK will see an increase, thanks to the government’s Triple Lock policy. This annual rise is designed to ensure pension payments keep pace with economic factors and protect retirees’ income.
The Triple Lock guarantees that the state pension increases each April by the highest of three measures: average earnings growth, CPI inflation, or a minimum of 2.5%. For 2026, the increase will be based on a 4.8% growth in average wages, recorded between May and July 2025.
Rachel Vahey, Head of Public Policy at AJ Bell, explained, “The state pension should rise by an inflation-busting 4.8% starting next April, following the earnings growth figure this summer. Meanwhile, September’s CPI inflation was confirmed at 3.8%, and the guaranteed minimum increase remains at 2.5%.”
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Vahey added that while this boost is welcome news for pensioners, it also poses budgeting challenges for the government. “The rise means the new state pension will reach approximately £12,548 annually from April 2026—surpassing £12,000 for the first time and closely approaching the frozen personal allowance threshold,” she noted.
The increase will raise the ‘new’ state pension from £230.25 per week (£11,973 per year) to £241.30 per week (£12,548 per year). Likewise, recipients of the ‘old’ state pension will see an increase from £176.45 per week (£9,175 per year) to £184.90 per week (£9,615 per year).
Rachel Vahey supports financial advisers and planners by providing insights into changing pension policies and legislation, helping them better serve their clients amid evolving regulations.