People on Basic State Pension could be due up to £718 each month from next April

Linda Howard

21 June 2024 at 10:46 am·3-min read

Some 9.7 million people on the Basic State Pension could see weekly payments rise by up to £40 each month from next April, under the Triple Lock policy. Both the Conservatives and Labour Party have pledged to maintain the Triple Lock for the duration of the next parliament, if they win the General Election on July 4.

Under the Triple Lock, the New and Basic State Pensions increase each April in-line with whichever is the highest of the average annual earnings growth from May to July, the Consumer Price Index (CPI) in the year to September or 2.5 per cent. The latest figures from the Office for National Statistics (ONS) show that the CPI inflation rate dropped from 2.3 per cent in April to 2.0 per cent in May.

At present, this makes it the lowest measure of the Triple Lock while earnings growth is currently the highest - and the one to watch. Annual growth for regular earnings (excluding bonuses) was 6.0 per cent in February to April 2024 while annual growth in employees’ average total earnings (including bonuses) was 5.9 per cent.

If the earnings growth measure for May to July - which is due to be published by the ONS on August 13 - remains at 5.9 per cent (including bonuses), it will almost certainly be the determining factor for the State Pension uprating in April 2025.

The full Basic State Pension is currently worth £169.50 each week, or £678 every four-week pay period. An annual uprating of 5.9 per cent would see payments go up to £179.65 per week, £718.60 every four-week pay period, or £9,341.80 over the 2025/26 financial year

Similarly, 2,6 million people are currently receiving New State Pension payments of up to £221.20 each week, or £884.80 every four-week pay period. An uprating of 5.9 per cent would see someone on the full New State Pension receive £234.45 each week, £937.80 every four-week pay period, or £12,191.40 over the 2025/26 financial year

Remember, these figures are estimated calculations based on the current figures. It's also important to be aware that additional State Pension payments and deferred State Pensions rise each year under the CPI for September. The UK Government typically confirms the annual uprating during the Autumn Statement in November.

Commenting on the latest CPI inflation rate, Steven Cameron, Pensions Director at Aegon, said: “Last week, the launch of the Conservative and Labour manifestos finally made an official commitment to maintain the State Pension Triple Lock for the next five years. As a result, State Pensioners can have peace of mind knowing that their State Pension will continue to increase at the highest of price inflation, earnings growth or 2.5%.

“The Conservatives went a stage further, committing to their new ‘Triple Lock Plus’, under which the Personal Allowance for State Pensioners would also increase in line with the Triple Lock. This removes any possibility of State Pensioners in receipt of the full New State Pension paying income tax on this.”

New State Pension payment rates 2024/25

Full payment rate: £221.20
Every four-week pay period: £884.80

Basic State Pension payment rates 2024/25

Category A or B Basic State Pension (full rate): £169.50
Every four-week pay period: £678.00
Category B (lower) Basic State Pension - spouse or civil partner's insurance: £101.55
Category C or D - non-contributory: £101.55

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New State Pension payment rates 2024/25

Basic State Pension payment rates 2024/25

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