Archive · 18 Aug 2026
State Pension Could Rise Above £13,000 Next April
The state pension may increase next April.
This is because wages have recently gone up by 4.1%.
If that number stays similar, the full new state pension could become more than £13,000 a year.
That would be about £500 more each year for people receiving the full amount.
The final increase is not known yet.
The government uses the highest of wage growth, inflation, or 2.5% to set the rise.
The final wage and inflation numbers will be published later.
The new amount could be higher than the usual tax-free income allowance.
The government says people with only the state pension will not have to pay tax because of the increase, but it has not explained exactly how this will work.
Average total pay rose by 4.1% in the three months to June, according to the Office for National Statistics.
If earnings growth remains at 4.1%, the full new state pension could rise from £241.30 to about £251.20 a week.
The annual full new state pension could increase by approximately £514.80 to around £13,062.40.
The final increase will depend on wage growth and inflation figures due later, under the government’s triple lock.
A rise above the £12,570 personal allowance would raise questions about how pensioners relying only on the state pension are protected from income tax.
- Who
- State pension recipients, the government, the Office for National Statistics, and pension analysts including Helen Morrissey and Steve Webb.
- What
- The full new state pension could rise by about 4.1%, taking annual payments above £13,000.
- When
- Next April; the figures used for the 2027 increase will be published over the coming months.
- Where
- The state pension system; the article does not specify a particular location.
- Why
- The government’s triple lock uses whichever is highest among average earnings growth, inflation, or 2.5%.
Government Tax Protection
Calls for Clarification
Whether pensioners will pay tax
Government Tax Protection
The government has previously said people whose only income is the state pension will not be charged income tax because of the increase.
Calls for Clarification
Former pensions minister Steve Webb warned that the pension could exceed the personal allowance and said the government should explain how its promise will work.
Expected pension rise
Government Tax Protection
The latest earnings data suggest wages could determine the increase, potentially producing a rise of about 4.1%.
Calls for Clarification
The final rise is not confirmed because wage growth could fall or inflation could rise before the relevant figures are used.
- Current full new state pension
- £241.30 a week, or £12,547.60 a year
- Potential increase
- Approximately 4.1%, if current wage growth remains similar
- Potential weekly payment
- Around £251.20
- Potential annual payment
- Approximately £13,062.40
- Potential annual gain
- About £514.80
- Current basic state pension
- £184.90 a week
- Personal allowance
- £12,570
- Other figures still needed
- The earnings figure covering May to July and September’s inflation figure