DWP to pay £605 a year extra to everyone born after two key dates

A pensioner couple sitting at a table working out their finances
-Credit: (Image: Getty Images/iStockphoto)

Those born in specific years are poised to receive a significant boost to their state pension, amounting to over £600 annually. This is due to "triple lock" forecasts suggesting that the benefit will rise by 5.7% next year, translating to an additional £605 per person each year.

The new state pension, launched in 2016, applies to all men born after April 5, 1951 and women born after April 5, 1953. According to recent figures, everyone eligible for the State Pension will gain an extra £605 a year courtesy of the Triple Lock.

The Department of Work and Pensions (DWP) is obligated to increase the sum paid to those receiving the state pension each year due to the "triple lock" system. This system ensures that the pension must rise each year, either in line with inflation, wage growth or by 2.5%, whichever is highest, the Express reported.

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The most recent Consumer Price Index figures, used to calculate the 'inflation' component of the Triple Lock, indicate a potential 5.7% monthly rise for pensioners. As a result, the Full New State Pension will be worth £233.80 each week, £935.20 every 4-week pay period and £12,157.60 over the 2025/26 financial year, an increase of roughly £605 per year. Sign up for the North Wales Live newsletter sent twice daily to your inbox

The latest figures from the ONS show wage growth has slowed to its lowest rate in 10 months, at 5.7% for January to March 2024.

Steven Cameron, Pensions Director at Aegon, said: "For the April 2024 increase, earnings growth in 2023 produced an inflation-busting 8.5 per cent increase. In April 2023, a spike in inflation the previous year led to a record-breaking 10.1 per cent boost to the State Pension. These increases and the underlying high volatility that was present in both price inflation and earnings growth, have since raised serious questions over longer term affordability of the State Pension, which is paid for by today's workers through National Insurance Contributions."

He added: "With inflation having now fallen below the 2.5 per cent underpin, it's likely to be earnings growth that determines next year's triple lock increase, as the latest figures have this sitting at 5.7 per cent (for January to March 2024)."

Mr Cameron added: "The specific figure used for determining the Triple Lock will be the year-on-year increase in earnings for the period ending May to July 2024, which will be published in September. Barring a significant drop in earnings growth over the next few months, this figure will likely determine next year's triple lock."

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