State Pension to rise by 5.9% from next April - how to work out what you'll get

A happy older couple smiling as they walk in the sunshine
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Millions of older people across the UK are set to have their future State Pension payments safeguarded by the Triple Lock Policy. It follows Labour's victory in the General Election on July 4, and ensures that the New and Basic State Pensions increase annually in line with whichever is highest: average annual earnings growth from May to July, CPI in the year to September, or 2.5 per cent.

The most recent data from the Office for National Statistics (ONS) reveals that UK inflation dropped to 2.0 per cent in May and is predicted to stay on target for the remainder of the year. Crucially, this is also expected for the vital Triple Lock uprating measure due in mid-October.

Annual earnings growth, including bonuses, was recorded at 5.9 per cent between February and April. This means it currently stands as the highest measure of the Triple Lock and is the leading factor for the State Pension annual uprating for 2025/26.

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However, it's crucial to note that the ONS will publish the earnings growth figure used for the Triple Lock on August 13. As it stands now, it appears set to be the key driver.

This could result in nearly 12.7 million State Pensioners across the UK, including over 1.1 million residing in Scotland, receiving up to £234.45 each week, or £937.80 every four-week pay period in the next financial year, reports the Daily Record.

State Pension uprating predictions for 2025/26

The New and Basic State Pensions saw an increase of 8.5 per cent in April, as part of the earnings growth measure of the Triple Lock. This means that individuals on the full New State Pension now receive £221.20 weekly, or £884.80 every four weeks during the 2024/25 financial year.

Liz Kendall arrives in Downing Street
Liz Kendall arrives in Downing Street to be appointed Secretary of State for Work and Pensions as Britain's new Prime Minister Sir Keir Starmer forms his first Cabinet of Ministers -Credit:Wiktor Szymanowicz/Future Publishing via Getty Images

Those on the full Basic State Pension now receive £169.50 each week, or £678 every four weeks.

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

Please note, these calculations are based on the current ONS data. The key figure to keep an eye on is the May to July earnings growth figure, which will be published on August 13.

It's also crucial to remember that additional State Pension payments and deferred State Pensions rise annually under the CPI for September. The UK Government typically confirms the annual uprating during the Autumn Statement in November.

State Pension and tax

Pensioners will also be interested to see if Sir Keir Starmer decides to unfreeze the Personal Allowance, which has been frozen at £12,570 since the 2021/22 financial year.

The most recent figures from HM Revenue and Customs (HMRC) reveal that 8.1m (64%) people in retirement currently pay tax, largely due to additional income from workplace or private pensions on top of their State Pension.

Pension experts at Spencer Churchill estimate that nearly 900,000 more individuals will surpass the Personal Allowance threshold during the current financial year, with an additional 2m expected before the freeze concludes in 2028 - a timeline established by the departing Conservative government.

The full New State Pension is valued at £11,502 for the 2024/25 financial year, leaving just £1,068 before reaching the personal tax threshold. Therefore, anyone with an extra income of £89 or more per month - on top of the State Pension - may face a tax bill the subsequent year.

An individual receiving the full rate of the Basic State Pension will get £8,814 this year. This leaves only £3,756 before the personal tax threshold is surpassed, equivalent to an additional income totalling £313 per month.