Politics · United Kingdom · 6 hrs ago
Full new state pension set to rise to £250.70 a week
The UK’s full new state pension is expected to rise 3.9% next April, from £241.30 to £250.70 a week.
The increase is about £489 over a year, taking the annual amount to around £13,036.
The triple lock raises the pension each April by whichever is highest: inflation, wage growth or 2.5%.
Wage growth of 3.9% is higher than September inflation of 3.5%, so it sets the expected increase.
People who retired before 6 April 2016 receive the basic state pension, which is expected to rise from £184.90 to £192.10 a week.
The full new pension will exceed the £12,570 personal tax allowance, but the Government has pledged that people relying only on the basic or new state pension will not pay tax on it.
Pensioners with other income may still owe tax, and the Government is expected to provide further details in the Budget.
The full new state pension is expected to rise by 3.9% to £250.70 a week next April.
That would increase the annual amount from £12,547 to about £13,036, a rise of £489.
The increase is based on wage growth of 3.9%, which exceeded September’s inflation rate of 3.5%.
The full basic state pension is expected to rise from £184.90 to £192.10 a week.
The higher pension could put some recipients with other income above the £12,570 personal tax allowance.
- Who
- People receiving the full new state pension are expected to receive the increase.
- What
- Their weekly payment is expected to rise to £250.70, up from £241.30.
- When
- Next April, in 2027.
- Where
- The United Kingdom.
- Why
- The triple lock uses the highest of inflation, earnings growth or 2.5%; earnings growth of 3.9% was higher than September inflation of 3.5%.
This story does not have two clearly opposing sides.
Average annual earnings growth was recorded at 3.9%, according to the articles.
September CPI inflation was reported at 3.5%, below the 3.9% earnings figure.
The full new state pension is expected to rise to £250.70 a week.
- Expected weekly new state pension
- £250.70
- Current weekly new state pension
- £241.30
- Expected increase
- 3.9%, or £9.40 a week
- September CPI inflation
- 3.5%
- Personal tax allowance
- £12,570
4 sources
What people are saying
The full new state pension is set to surge past £13,000 for the first time, leaving the frozen £12,570 personal allowance trailing in its wake.
While the uplift in income will be welcomed by many, it also marks a significant milestone, with the full new state pension exceeding the £12,570 personal allowance for the first time.
people only in receipt of the basic or new state pension do not have to pay small amounts of tax through Simple Assessment from April 2027