From April 2025, the full state pension is expected to increase by £460 a year. The increase is linked to wages, as they have surged by 4%. Under the “triple lock” system, the state pension rises annually by whichever figure is the highest – either 2.5%, inflation, or earnings growth.
The state pension is a government payment given to those who have reached the qualifying age and have made enough National Insurance contributions. By April 2025, the earnings link is predicted to make the state pension worth over £9,300 a year, up from the initial £7,000 when the triple lock was first introduced.
The triple lock was initially created by the Conservative-Liberal Democrat coalition in 2010. The system came as an assurance that the state pension’s value would not be surpassed by the increase in the cost of living or the earnings of working people. Chancellor Rachel Reeves has stated that the Labour government will keep the triple lock until the end of the current Parliament.
Over 12 million UK citizens receive the state pension presently. For individuals born between 6 October, 1954 and 5 April, 1960, they begin receiving their pension when they reach 66. Conversely, for people born after this period, the state pension age increases gradually from 67 to 68. The International Longevity Centre UK think tank asserts that the UK will have to increase the state pension age to 71 by 2050 to make the expense sustainable.
Pension credit, in addition to the basic state pension, is even available to people above the retirement age, depending on their overall earnings. Whether through financial support, housing benefits, or reductions in council taxes, anyone can receive the pension credit. Likewise, many individuals may be eligible for the winter fuel payment, although starting in autumn 2024, only those receiving means-tested benefits will continue qualifying for the payment
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