Jasmine Birtles
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State Pension is Confirmed to Rise… By More Than Predicted
Vicky Parry
16th Oct 2024
On 6 April 2025, the full State Pension is scheduled to increase by £362.65 per year (4.1%) for most pensioners, thanks to the ‘triple lock’ guarantee. Those receiving the full new State Pension will see a larger rise of £474.85. In contrast, certain benefits, including Universal Credit, are expected to increase by 1.7%.
The Office for National Statistics (ONS) has confirmed September 2024 inflation at 1.7%, which means that, under the triple-lock guarantee, state pensions are set to rise next year by the higher earnings growth of 4.1%.
Here’s what you can expect from April 2025 under the triple-lock:
- The single state pension will go up from £221.20 per week (£11,502 per year) to £230.30 per week (£11,975 per year).
- The ‘old’ state pension will increase from £169.50 per week (£8,814 per year) to £176.45 per week (£9,175 per year).
- The ONS recently revealed that average earnings growth in the three months to July hit 4.1%, slightly higher than the previous estimate of 4%, pushing pension increases higher than initially expected.
- Looking ahead, the single state pension is projected to surpass the personal allowance of £12,570 by 2027/28, even if annual increases only hit the minimum 2.5% under the triple-lock.
- At some point during this Parliament, the new government will have to tackle the tricky issue of what the state pension should be worth and when Brits should be eligible to claim it.
We will exoect to get the full details at Rachel Reeves first Autumn Statment in two weeks time.
Stay tuned!
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