State Pension set to rise by 4.1% under Triple Lock formula

The Labour Party committed to protecting the Triple Lock in its manifesto, but how long is it sustainable?

Pensioners can expect a 4.1% boost to their State Pension from April next year, figures today confirmed.

This is more than double the current rate of inflation and will see payments for those receiving the basic State Pension rise from £169.50 to £176.45 a week, according to calculations from Aegon. The pension and investment management company also revealed those on the full new State Pension will see payments increase by £9.10 to £230.30 per week.

Steven Cameron, Pensions Director at Aegon, explained the rise is due to the Triple Lock and should offer State Pensioners some comfort “after many losing out on the winter fuel allowance”.

Will there be changes to the State Pension in the Autumn Budget?

While an increase to the State Pension is yet to be officially confirmed, the Labour Party committed to protecting the Triple Lock in its manifesto ahead of the General Election back in July.

“The Chancellor, Rachel Reeves, may choose to shout out about this inflation-beating boost in her first Budget in two weeks’ time”, speculated Rachel Vahey, Head of Public Policy at investment platform, AJ Bell.

However, she added, how long the Government can keep its promise “remains to be seen”.

“The State Pension is now at a level perilously close to the frozen personal allowance and should overtake it in two years’ time,” Vahey warned.

“It could be that this fast-approaching crunch time means the Government will finally be forced to address the question of how much the State Pension should really offer, at what age, and how it can increase payments sustainably each year,” she concluded.

Although changes to the Triple Lock are likely off the table for the upcoming Autumn Budget (taking place Wednesday 30 October), pensioners should keep a close eye on other measures announced and consider how they may be impacted.