State pension likely to rise by 3. 9% next April

State pension likely to rise by 3. 9% next April. The full, flat-rate state pension is expected to rise by £488 a year in April, based on the latest official earnings figure released on Tuesday.

What happened

The state pension is expected to match wage growth in the next calculation and is likely to be higher than the rate of inflation. This means:the flat-rate state pension – for those who reached state pension age after April 2016 – will likely be £250. That would be an increase of £488the old basic state pension – for those who reached state pension age before April 2016 – will likely be £192. 40 a year, up £488 on nowthe old basic state pension – for those who reached state pension age before April 2016 – will likely be £192.

9% is likely to determine the April 2027 state pension increase. The expected increase in April 2027 would take the flat-rate state pension above the personal allowance of £12,570 and so liable to pay about £91 next year in income tax. But for people born after this date, the state pension age is increasing in two phases:a gradual rise to 67 for those born on, or after, 5 April 1960a gradual rise to 68 between 2044 and 2046 for those born on, or after, 5 April 1977The rise from 66 to 67 began in April 2026.

The wider picture

The state pension rises by the highest of wage growth, inflation or 2. 5%. Although the state pension age is rising to 67, the cost to the government has risen considerably too. Image source, Getty ImagesPublished17 June 2020Updated 7 hours agoThe new state pension is expected to rise by £488 a year, as a result of the triple lock arrangement. Since 6 April 2026: the new flat-rate state pension – for those who reached state pension age after April 2016 – is £241. 60 a yearthe old basic state pension – for those who reached state pension age before April 2016 – is £184.

Under the triple lock system, the state pension increases each April in line with whichever of three measures is the highest:inflation in the September of the previous year, using a measure called the Consumer Prices Index (CPI)the average increase in total wages, including bonuses, across the UK for May to July of the previous yearor 2. It said the cost of the state pension has risen steadily over the past eight decades, and now equates to £138bn, or around half the total amount the government spent on benefits.

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What has been reported

Image source, Getty ImagesByEmer Moreau, Business reporter and Kevin Peachey, Cost of living correspondentPublished15 September 2026, 07:12 BSTUpdated 3 hours agoThe state pension is expected to top £13,000 a year, reigniting the debate about its long-term affordability and generational fairness. The so-called triple lock pension policy guarantees that the state pension will increase by either average wage growth, inflation or 2. Labour made a manifesto pledge to keep the triple lock until 2029, however economists have warned about the cost of the policy ahead of the Budget although pensioner groups say many people still face poverty in old age. 'Substantial' costThe triple lock was designed to ensure the value of the state pension was not overtaken by the increase in the cost of living or the incomes of working people.

Forecasts suggest state pension spending, already at £154bn this year, could go up by a further £600m a year by 2029-30. 40Pensioner groups have said older people face significant cost of living pressures, such as high energy bills and the state pension itself remained relatively small compared with state provision across Europe. Why Gen Z are planning for life without a state pensionPublished1 JulyWhat is the triple lock and how much is the state pension worth?

Almost 13 million people receive the state pension in the UK. 9%, it would take the flat-rate state pension above the personal allowance of £12,570 and therefore be liable for income tax.

What happens next

The government said it has recommitted to exempting people whose only income is the state pension from tax. The Labour government – when Rachel Reeves was chancellor – promised that pensioners who rely solely on the state pension would not be required to complete a tax return, nor be chased to pay. When asked by the BBC on Tuesday morning, Business Secretary Jonathan Reynolds refused to confirm that pensioners reliant on the state pension will be exempted from paying income tax.

Prior to the government saying it had recommitted to its pledge on tax and pensions, shadow chancellor Andrew Griffith said: "People living on nothing but their state pension are now facing a tax bill for the first time ever. The triple lock guarantees that the state pension goes up each year in line with either inflation, wage increases or 2. The age at which millions of people can claim their state pension has started to increase from 66 to 67.

The state pension is a payment made every four weeks by the government, to people who have reached the qualifying age and have paid enough National Insurance (NI) contributions.

The report has been compiled by The Daily Waves using information reported across bbc.co.uk, theguardian.com. Details are presented according to the information available at the time of publication and may change as authorities, organisers or other relevant parties provide updates.