How much state pension will rise by next April with 3.9% increase expected

The state pension is on course to rise above £13,000 a year for the first time from next April, according to new wage data which is used to calculate the increase. The full new state pension – paid to those who reached state pension age after April 2016 – is on course to rise from £241.30 to £250.70 a week, under the triple lock. That works out at £13,036.40 a year, up from £12,547.60 now. The government has committed to keeping the triple lock in place for the whole of this Parliament, meaning the state pension rises each year by whichever is highest of average earnings growth, inflation or 2.5 per cent. The rise is smaller than had been expected. A month ago, based on an earlier set of figures, the pension had looked on course to rise to £251.20 a week, or around £13,060 a year. The lower estimate now on the table is because wage growth has slowed, coming in at 3.9 per cent in the three months to July, down from 4.1 per cent in the previous quarter. Pensioners on the older basic state pension will also see a smaller increase than had been expected. That payment, made to those who reached pension age before April 2016, is set to rise from £184.90 to £192.10 a week – an increase of £374.40 a year, down from the roughly £400 a year rise pencilled in last month. None of this is confirmed yet. The final figure depends on September’s inflation reading, due out on 21 October, which could in theory overtake wage growth as the higher number. Unless prices rise sharply, though, it is the earnings figure that is expected to set next April’s increase, with the Department for Work and Pensions confirming the rate once the inflation data is in. This is a breaking story and is being updated. EXPLORE MORE ON THE TOPICS IN THIS STORY