State Pension for Pre-1953 Born Women to Increase Nearly 5%, Resulting in £184 Weekly Payment

Older state pensioners, specifically women born before 1953, are set to receive a significant boost in their Basic State Pension payments thanks to the Department for Work and Pensions (DWP) Triple Lock policy. This increase could amount to nearly 5%, bringing the full Basic State Pension up to £184.90 per week in 2026, up from the current £176.45.

Martin Lewis, well-known financial expert and BBC and ITV personality, explained the mechanics behind the increase: “The State Pension is set to rise by 4.8% next April due to the Triple Lock guarantee. This mechanism ensures the pension rises by the highest of 2.5%, inflation, or average earnings growth. Recent figures show a 4.8% increase in earnings up to July, which is likely to be the figure used.”

With this adjustment, someone receiving the full new State Pension could see their annual amount reach around £12,548. This is just below the frozen personal allowance threshold, currently at £12,570, which is the tax-free earning amount each year.

Lewis cautions, “Since the State Pension income is taxable, those receiving the full new State Pension without additional income may begin to pay tax for the first time. The personal allowance remains frozen while pensions increase by at least 2.5%, meaning the pension will eventually push recipients over the tax-free limit.”

Helen Morrissey, Head of Retirement Analysis at Hargreaves Lansdown, added: “Recipients of the full new State Pension are expected to see a modest rise, from £241.05 to £241.30 per week, while those on the full Basic State Pension can anticipate a rise to £184.90 weekly. The final confirmation depends on upcoming inflation data, but current inflation at 3.8% suggests wage growth is the more likely factor.”

This anticipated pension increase underscores the ongoing impact of the Triple Lock on pensioners, highlighting both the benefits of rising payments and potential tax implications moving forward.