Over 12m people to benefit from state pension increase

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More than 12 million people will see their state pension rise by £575 a year from today.

The triple lock guarantee means it increases every April by whichever is highest out of inflation, wage growth or 2.5%.

Monday’s 4.8% rise – which is in line with average earnings growth – will take the full rate of the new state pension from £230.25 to £241.30 a week.

Meanwhile, the full basic state pension goes from £176.45 a week to £184.90.

The government said committing to the triple lock on pensions is helping to protect households against a cost of living squeeze.

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All of this comes as the Iran war causes global oil prices to surge, with a direct impact on motorists at the petrol pump.

But some critics, including the Institute for Fiscal Studies, have argued that the triple lock should be scrapped – and “a better approach is needed”.

Last year, the thinktank had warned the generosity of this policy has a “substantial and growing impact on public finances”, especially as the population ages.

The IFS had written: “The OBR estimates that spending on the state pension will rise by around £80bn in today’s terms by the 2070s, and over half of this increase is projected to be due to the triple lock.

“But under a more volatile economic environment the triple lock could cost an extra 1.5% of national income – or £44bn in 2025 terms – on top of this.”

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Work and Pensions Secretary Pat McFadden said: “I know global shocks, and the effects they have on our living costs, will be increasing anxiety for many households.

“This government will always protect our pensioners, and that’s why we are raising the full rate of the new state pension by up to £575 this coming year.”

Earlier this week, Reform UK joined other major British political parties in committing to keep the pension triple lock.

At a news conference on Thursday, its economics spokesperson Robert Jenrick said this would be achieved by cutting the benefits bill by billions of pounds.

LocalReport Editorial Team
LocalReport Editorial Team publishes local and regional news from across the UK. Selected reports and illustrations are created with the assistance of AI using source material and publicly available information. We aim to present information clearly and accurately, and welcome corrections where needed.

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