Millions to see boost to state pension next year – see full details

Chancellor Rachel Reeves is expected to confirm the uplift to the state pension at this week’s Budget, with the payment rising to just over £240-per-week for millions

Millions of pensioners on the full state pension are set to receive over £550 more a year from 2026.

Chancellor Rachel Reeves is expected to confirm the uplift at this week’s Budget, with the state pension rising to just over £240-per-week.

The current state pension rate stands at £230.25-per-week but is guaranteed to rise due to the triple lock policy. Under the measure the state pension increases annually by the highest of inflation, average earnings growth, or 2.5%.

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Last month official figures showed average earnings growth higher than the rate of inflation – standing at around 4.8%. The increase for pensioners on the new state pension – a man born after April 1951 or a woman born after April 1953 – will be worth around £550-per-year from next April

Those on the older basic state pension will see around an extra £440-per-year. Pensioners on an income of £35,000 or below will also be entitled to a winter fuel payment this year after the government’s abrupt U-turn earlier in the summer.

Ms Reeves said: “Whether it’s our commitment to the triple lock or to rebuilding our NHS to cut waiting lists, we’re supporting pensioners to give them the security in retirement they deserve.

“At the Budget this week I will set out how we will take the fair choices to deliver on the country’s priorities to cut NHS waiting lists, cut national debt and cut the cost of living.”

Labour committed to keeping the state pension triple lock in its election manifesto last year. Speaking in September, the Work and Pensions Secretary Pat McFadden, said: “This Labour government is committed to maintaining the Triple Lock for the course of this Parliament.

“It is estimated that will mean a rise in the state pension of around £1,900 a year by the end of the Parliament. That’s a commitment from the Labour government to the UK’s pensioners. It’s something that we said we’d do at the election and something that we will keep to.”