Due to wage increases, the state pension is to rise to £230 a week

Based on income figures released today, the full state pension will rise to almost £12,000 a year in 2025.

Under the triple lock, the state pension is increased by the highest amount each April – inflation, earnings growth or 2.5 per cent – and this year the earnings growth figure is expected to be the highest of the three.

It uses income data for the period May to July with a value of 4 percent, which was announced this morning by the Office for National Statistics (ONS).

The current new state pension, paid to those who reached state pension age after 6 April 2016, is £221.20 a week. If it were increased by 4 per cent, it would be £230.05 – as the amount is always rounded up to the nearest 5 pence. Over a year, this would be £11,962.60, up from £11,502.40 previously.

Those who retired before this date and are receiving a basic state pension will see their state pension increase from a maximum of £169.50 per week to £176.30.

Not all pensioners receive the full state pension. Those who do not have a full social security benefit often receive less.

Next April’s state pension increase has not yet been confirmed. Today’s pay growth figures could be revised next month – but probably only slightly, if at all.

If the inflation rate for September published in October turns out to be higher than wage growth – which is extremely unlikely this year – this would be the decisive factor in increasing the statutory pension.

The increase will most likely be announced in next month’s budget and will then come into effect from April 2025.

Labour has confirmed that it will maintain the triple-lock commitment introduced by the coalition government over a decade ago during this parliamentary term.

This news comes just weeks after the Finance Minister announced that she would scrap the Winter Fuel Payment for pensioners who do not receive Pension Credit or other income-related benefits.

On 29 July, Finance Minister Rachel Reeves announced that payments of up to £300 would no longer be uniform.

The decision to cut payments was part of a package of cost-cutting measures designed to plug a £22 billion “black hole” in the government’s coffers.

Former pensions minister Ros Altmann told i: “Any increase in the state pension next year will only mean a few pounds more a week for pensioners and the money will be paid out between April 2025 and April 2026.”

“This cannot possibly compensate the poorest pensioners for the loss of hundreds of pounds in 2024 that they need to cover their rising energy bills this winter.

“Sadly, many of those affected by the cruel and irresponsible cut to their Winter Fuel Payment will not be alive to receive the higher weekly State Pension by 2026.”

Jon Greer, head of pensions policy at asset management firm Quilter, said: “The news that the state pension is likely to rise by 4 per cent due to the triple lock based on recent earnings data comes as a significant relief to pensioners.”

“This increase is expected to increase the new full state pension by over £470 a year.

“The triple lock, which guarantees pension increases based on the highest rate of inflation, wage growth or 2.5 percent, continues to provide important financial security for pensioners.

“However, as the government prepares to make difficult decisions, many will fear that this policy could be next on Rachel Reeves’ chopping block.”