People receiving Basic State Pension from DWP could get up to £718 in their pocket each month

Taking a £5 note out of a wallet
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Under the Triple Lock policy, approximately 9.7 million individuals on the Basic State Pension could see their weekly payments increase by up to £40 each month from April next year. Both the Conservative and Labour parties have committed to maintaining the Triple Lock for the duration of the next parliament, should they be victorious in the General Election on July 4.

The Triple Lock ensures that the New and Basic State Pensions rise each April, in line with whichever is highest out 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. Recent data from the Office for National Statistics (ONS) indicates that the CPI inflation rate fell from 2.3 per cent in April to 2.0 per cent in May.

Currently, this makes it the lowest measure of the Triple Lock, while earnings growth is the highest - and the one to keep an eye on. The annual growth for regular earnings (excluding bonuses) was recorded at 6.0 per cent from February to April 2024, while the annual growth in employees' average total earnings (including bonuses) was 5.9 per cent.

If the earnings growth measure for May to July - set 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 increase in April 2025. The current full Basic State Pension stands at £169.50 each week, or a four-week total of £678. Should it see an annual rise of 5.9 per cent, pensioners would receive £179.65 weekly, equating to £718.60 every four weeks, or an annual sum of £9,341.80 during the financial year of 2025/26, reports the Daily Record.

Likewise, around 2.6 million individuals are on the New State Pension, which presently offers up to £221.20 per week, or £884.80 for every four-week interval. With a 5.9 per cent increase, recipients of the full New State Pension could expect £234.45 weekly, leading to £937.80 every four weeks, totalling £12,191.40 across the 2025/26 financial year.

Do bear in mind, these are merely projected numbers based on the present data. Additionally, it's critical to recognise that any additional State Pension and postponed State Pensions are annually adjusted in line with the Consumer Price Index (CPI) for September. The UK Government confirms the yearly uprate during November's Autumn Statement.

In response to the most recent 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