Chancellor Rachel Reeves confirmed that the triple lock on pensions would be honoured, with state pensions set to rise from April 1.
Under the triple lock – which guarantees an increase in line with average earnings, inflation or 2.5%, whichever is highest – pensions will increase by 4.1 per cent next month.
Why the Change?
The State Pension rise is partly driven by wage growth over the previous year. The triple lock ensures that pensions increase by the highest of three measures: inflation, wage growth, or 2.5%. This ensures that the State Pension remains robust enough to cover the rising cost of living and maintains relevance to the current economic landscape.
How much will I get?
From April 2025, those receiving the State Pension will see a boost thanks to the 4.1% increase. This is a rise tied to the earnings link, which forms part of the pension triple lock system. For individuals on the full, new flat-rate State Pension—applicable to those who reached state pension age after April 2016—the weekly payment will rise to £230.25. That’s an extra £470 over the year! Those on the full, old basic State Pension, for those who reached the age prior to April 2016, will see their weekly payments increase to £176.45, adding £361 annually.
Chancellor Rachel Reeves has confirmed that the triple lock will remain in place until at least the end of the current Parliament. Therefore, British pensioners can continue to expect annual increases to the national State Pension.
There’s even better news for low-paid workers.
The National Living Wage will be going up by up to 18% next month/
It will increase to £12.21 from April if you are 21 years old or older – a rise of 6.7%.
If you are 16-17 it goes up to £7.55 – a whopping 18% boost.
The increase in the 18-20 Year Old Rate narrows the gap between that and the NLW, in anticipation of the adult rate being extended to 18 year olds in future years.
Baroness Philippa Stroud, Chair of the Low Pay Commission, which sets the rate, said: “The Government have been clear about their ambitions for the National Minimum Wage and its importance in supporting workers’ living standards. At the same time, employers have had to deal with the adult rate rising over 20 per cent in two years, and the challenges that has created alongside other pressures to their cost base.”
