State pensioners will wake up to £920 boost 'in two weeks'

State pensioners will wake up to £920 boost 'in two weeks'
-Credit: (Image: Reach Publishing Services Limited)


A state pension uprating next year will mean pensioners are HUNDREDS of pounds better off. State pensioners will learn how much their regular payments will increase in April, two weeks before Labour Party Chancellor Rachel Reeves announces the annual uprating during the Autumn Budget in Parliament on October 30.

Based on the latest earnings growth figure, those on the full New State Pension could see a weekly increase of £8.85, from £221.20 to £230.05. As payments are typically made every four weeks, this equates to an increase of £920.20.

This would result in annual payments rising by £460, from £11,502 to £11,962, over the 2025/25 financial year. Pensioners receiving the full Basic State Pension are set for a weekly pay rise of £6.80, taking their income from £169.50 up to £176.30 delivering an annual boost of £705.20 over every four-week span.

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Standard Life's Retirement Savings Director at Phoenix Group, Mike Ambery, said: "Unless an unexpected shock drives price rises significantly higher than forecast, we're unlikely to see a situation where the inflation trigger rather than 4 per cent average earnings ends up determining the Triple Lock, however it's worth noting that as inflation creeps further above the Bank of England's 2 per cent target it will erode the real impact of next year's boost for pensioners."

He said: "With price rises around the 2.2 per cent mark, the real boost for pensioners will be 1.8 per cent - with inflation at target, they would be 2 per cent better off." He added: "This winter's price rises are likely to be heavily driven by rising energy costs. Next year, like this year, there will no longer be a universal Winter Fuel Payment and so if energy prices follow the same pattern in 2025 they could further erode the Triple Lock boost."

"Pensioners on lower incomes and most dependent on the State Pension for income are likely to feel the greatest impact of this - we would urge anyone of State Pension age and on a low income to check their eligibility for Pension Credit using the government's online Pension Credit calculator," he said.