How much the state pension will rise by this year
While Boris Johnson promised to hold a full budget within 100 days of his election victory, many of the details of next year’s state pension increases were unveiled last month.
While Boris Johnson promised to hold a full budget within 100 days of his election victory, many of the details of next year’s state pension increases were unveiled last month. The budget will confirm the final figures, but the changes, which come into effect in April, are based on the “triple-lock” formula. This guarantees that state pensions will rise in line with the highest of inflation, average earnings, or 2.5%.
Back in October, the date at which this assessment is made, earnings growth was running at around 4%. As a result, the full new state pension will be £175.20 a week, up from the current £168.60. Alternatively, for those who reached the state pension age before April 2016, and receive the basic state pension, the weekly payment is rising from £129.20 to £134.25.
Try 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
