DWP rule change means everyone born in these years will get £600 boost

-Credit: (Image: Pete Stonier)
-Credit: (Image: Pete Stonier)

Those born in certain years are set to see a significant increase to their state pension - totalling over £600 per year. This is due to the Triple Lock forecasts predicting a 5.7% rise next year, equating to an extra £605 per person annually.

The new state pension, launched in 2016, applies to all men born after April 5, 1951, and women born post April 5, 1953. According to recent data, everyone eligible for the State Pension will benefit from an additional £605 yearly thanks to the Triple Lock.

The Department of Work and Pensions (DWP) is legally obliged to raise the state pension each year through the 'Triple Lock' system. This guarantees that recipients receive an annual increase either in line with inflation, wage growth or by 2.5%, whichever is highest.

The most recent Consumer Price Index figures, used to calculate the 'inflation' component of the Triple Lock, suggest a potential 5.7% monthly rise for pensioners. As a result, the Full New State Pension could be worth £233.80 weekly, £935.20 every four weeks, and £12,157.60 over the 2025/26 financial year, representing an approximate increase of £605 per year.

Steven Cameron, Pensions Director at Aegon, has voiced his concerns on the State Pension affordability due to the high volatility present in both price inflation and earning growth. He was quoted in an Express report, saying: "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 further stated: "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)."

Continuing to provide clarification, Mr Cameron said: "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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