State Pension Set for £560 Rise Next Year, Adding Pressure on Reeves
The state pension is on track to rise by £560 from April 2026, putting additional strain on Chancellor Rachel Reeves as she seeks to manage public finances.
According to the latest data from the Office for National Statistics (ONS), the uplift represents a 4.7% increase, taking the annual value of the full new state pension to £12,536, or £241 per week, up from £230.25.
Under the triple lock system, the state pension rises each April in line with the highest of the previous September’s inflation, wage growth, or 2.5%. With inflation forecast to remain below 4%, the government is expected to peg the increase to total pay growth, which rose 4.7% in the three months to July compared with the same period last year.
While the increase will be welcomed by pensioners, it adds to the Treasury’s fiscal challenge at a time when Reeves is attempting to balance the books amid wider spending commitments.
Government Reaffirms Commitment to Pensions Triple Lock
Pat McFadden, Secretary of State for Work and Pensions, has confirmed that the government remains committed to maintaining the pensions triple lock throughout this parliament, according to reporting by Sky News’s Sam Coates.
The pledge comes as speculation grows over the scale of next year’s state pension increase, with current forecasts suggesting retirees could receive a rise of around £560 a year under the formula that ties annual increases to whichever is highest of inflation, average earnings growth, or 2.5%.
The government’s reaffirmation is likely to reassure pensioners but will also fuel debate over the long-term affordability of the policy, given the ongoing pressure on public finances.
