What's happened
The UK state pension is projected to rise by approximately £460 annually from April 2025, based on a 4% increase in average earnings. This adjustment follows the government's commitment to the triple lock system, which guarantees pension increases based on earnings, inflation, or a minimum of 2.5%.
Why it matters
What the papers say
According to Vicky Shaw from The Independent, the state pension is expected to rise by £460 for those receiving the full new state pension, while those on the old basic state pension will see an increase of £353. This is based on the latest wage growth figures from the Office for National Statistics, which reported a 4% increase in average earnings. Larry Elliott from The Guardian highlights that the triple lock guarantees pensioners receive the highest increase based on earnings, inflation, or a minimum of 2.5%. However, the current inflation rate stands at 2.2%, suggesting that earnings growth will likely dictate the pension increase next year. The government's recent decision to cut winter fuel payments has also sparked backlash, as reported by BBC News, indicating a potential shift in how pensioners perceive government support.
How we got here
The state pension increase is determined by the triple lock policy, which was introduced in 2012. This policy ensures that pensions rise in line with the highest of inflation, average earnings, or a minimum of 2.5%. The latest figures indicate a significant increase in average earnings, which will influence the upcoming pension adjustments.
More on these topics
-
The Office for National Statistics is the executive office of the UK Statistics Authority, a non-ministerial department which reports directly to the UK Parliament.
-
Labor-Gesher was a joint list of the Israeli Israeli Labor Party and Gesher parties for elections for the twenty-second Knesset. The list advocated social democracy and progressive taxation. The list's platform focused primarily on socio-economic issues.
-
Rachel Jane Reeves is a British Labour Party politician serving as Shadow Chancellor of the Duchy of Lancaster and Shadow Minister for the Cabinet Office since 2020. She has been the Member of Parliament for Leeds West since 2010.
-
The Department for Work and Pensions is a British government department responsible for welfare and pension policy. It is the largest governmental department in terms of employees and budget.
-
Sir Keir Rodney Starmer KCB QC MP is a British politician and former lawyer who has served as Leader of the Labour Party and Leader of the Opposition since 2020. He has been Member of Parliament for Holborn and St Pancras since 2015.
-
Elizabeth Louise Kendall is a British Labour Party politician who has been Member of Parliament for Leicester West since 2010.
Kendall was educated at Queens' College, Cambridge where she read history.