People on New State Pension could be due up to £938 each month from next April

The latest figures from the Office for National Statistics (ONS) show UK inflation fell to the lowest level in nearly three years in May. The Consumer Price Index (CPI) inflation rate slowed to 2.0 per cent, down from 2.3 per cent in April and is now the lowest level since July 2021 when inflation was also recorded at that rate, which is the Bank of England’s target level.

Nearly 12.7 million State Pensioners across Great Britain, including over one million living in Scotland, should keep a close eye on the CPI as it forms part of the Triple Lock measure which determines the annual uprating for the contributory benefit.

Under the Triple Lock policy - which both the Conservatives and Labour Party have pledged to honour for the next five years - the New and Basic State Pensions increase each year in-line with whichever is the highest of average annual earnings growth from May to July, CPI in the year to September or 2.5 per cent.

State Pension uprating predictions for 2025/26

The New and Basic State Pensions increased by 8.5 per cent in April - the earnings growth measure of the Triple Lock. This means someone on the full New State Pension receives £221.20 every week, or £884.80 every four-week pay period during the 2024/25 financial year.

Those on the full Basic State Pension receive £169.50 each week, or £678 every four-week pay period.

The latest ONS figures show the annual growth for regular earnings (excluding bonuses) was 6.0 per cent in February to April 2024. Annual growth in employees’ average total earnings (including bonuses) was 5.9 per cent in February to April 2024.

If the earnings growth measure for May to July remains at 5.9 per cent (excluding bonuses), it will almost certainly be the determining factor for the State Pension uprating in April 2025.

This could see those on the full New State Pension receive an extra £13.25 each week, some £53 per 4-week pay period.

Similarly, someone on the full Basic State Pension would get an additional £10.15 per week, some £40.60 every four-week pay period.

A 5.9 per cent increase on the current State Pension would see people receive:

  • Full New State Pension - £234.45 each week, £937.80 every 4-week pay period, £12,191.40 over the 2025/26 financial year

  • Full Basic State Pension - £179.65 each week, £718.60 every 4-week pay period, £9,341.80 over the 2025/26 financial year

Remember, these figures are just calculations based on the current figures. The one to watch out for is the May to July earnings growth figure which will be published by the ONS on August 13.

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.