Exact amount YOUR state pension is set to go up by next year under triple lock – and why you may be taxed on it

THE amount your state pension is set to increase by next year has been revealed – and some people may be in for a bumper increase. Under the triple lock the state pension increases each year by September’s inflation figure, 2.5% or the average earnings growth between May and July – whichever is highest. Today’s figures from the Office for National Statistics showed that total pay grew by 4.1% between April and June 2025 and the same period in 2026. Unless inflation rises sharply in the next three months from its current rate of 2.6%, it is likely that the average earnings growth figure will be used to determine how much the state pension will rise next April. Sign up for the Money newsletter Thank you! Next month’s earnings figure, which will reveal wage growth for May-July, will be used to calculate the triple lock. If next month’s figures are the same as today’s then the new state pension would increase by £9.90 a week, or £500 a year. Pensioners would receive £251.20 a week, up from the current rate of £241.30. The increase would push up the state pension from £12,548 a year to £13,048. As a result, the payments would be above the threshold at which you begin to pay income tax. But in last year’s Budget the former chancellor Rachel Reeves confirmed that pensioners whose sole income comes from the state pension will not have to pay tax. Most read in Money The government has not yet confirmed how this would work. Meanwhile, those on the old state pension could see their weekly income increase from £184.90 to £192.50 – an increase of £7.60. The increase would increase the old state pension from £9,615 to £10,010 a year, an increase of just under £400. Many of these pensioners will also receive an inflation-linked increase of any additional state pension they receive. The additional state pension supplements the basic state pension and is paid to people who made extra National Insurance contributions. Former pensions minister and partner at consultants LCP said: “Unless things change sharply in the next month, those on the new state pension can expect to see an increase of around £500 per year next April. “But the sting in the tail is that this will take the standard rate of the new state pension above the tax threshold.” He added that as a result we urgently need to know how the Government plans to avoid taxing retirees whose sole income is from the state pension. How does the state pension work? AT the moment the current state pension is paid to both men and women from age 66 - but it's due to rise to 67 by 2028 and 68 by 2046. The state pension is a recurring payment from the government most Brits start getting when they reach State Pension age. But not everyone gets the same amount, and you are awarded depending on your National Insurance record. For most pensioners, it forms only part of their retirement income, as they could have other pots from a workplace pension, earning and savings. The new state pension is based on people’s National Insurance records. Workers must have 35 qualifying years of National Insurance to get the maximum amount of the new state pension. You earn National Insurance qualifying years through work, or by getting credits, for instance when you are looking after children and claiming child benefit. If you have gaps, you can top up your record by paying in voluntary National Insurance contributions. To get the old, full basic state pension, you will need 30 years of contributions or credits. You will need at least 10 years on your NI record to get any state pension. Comment now