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State pension to rise by 3.9% – how much could you get?
The UK state pension will rise by 3.9% per year from April 2027 in line with earnings data. How much will you be able to get?
Pensioners will receive an above-inflation rise in their state pension next April, tipping the full new annual amount over £13,000 for the first time.
Under the triple lock mechanism, the state pension rises each April by the highest of the previous September’s Consumer Prices Index (CPI) measure of inflation, 2.5% or average earnings growth from the previous May to July.
CPI inflation rose by 3.5% in the 12 months to September 2026, while revised earnings figures published in October showed earnings in May to July 2026 increased by 3.9%.
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Pat McFadden, secretary of state for work and pensions, said in a written statement to Parliament: “I am pleased to announce that the basic and full rate of the new state pensions will be increased by 3.9%, in line with the increase in average weekly earnings in the year to May to July 2026.
“This delivers on our triple lock commitment throughout this Parliament to increase these rates in line with the highest of growth in prices, growth in earnings or 2.5%.”
How much will the state pension rise by?
The full new state pension, paid to men born on or after 6 April 1951 and women born on or after 6 April 1953, will increase from £241.30 per week (around £12,547 per year) to £250.70 per week (around £13,037 per year) from next April.
The basic state pension, paid to older pensioners, is increasing from £184.90 a week (around £9,614 per year) to £192.10 (around £9,989 per year).
For example, additional amounts such as SERPS or state second pension are inflation-linked.
Meanwhile, extra amounts of state pension received from deferring don’t rise in line with the triple lock and instead increase based on inflation.
Will retirees have to pay tax on their state pension?
More pensioners faced paying income tax from April 2027 due to the ongoing freeze to income tax bands and a rising state pension.
However, in the 2026 Budget, the government confirmed low-income pensioners will be protected from paying income tax from April 2027.
Under chancellor John Healey’s new pension tax allowance, if a pensioner’s total income is more than the £12,570 personal allowance but less than the value of the full new state pension (£13,037), they won’t pay income tax.
If their total income is between £13,037 and £13,319, they will pay some income tax, but less than they would have before the change. Those with a total income over £13,319 won’t receive any pension tax allowance.
How to protect yourself from income tax
If you’re a pensioner with a total income over £13,319, there are other methods you can use to lower your income tax bill.
One is to only draw the pension income you need. Leaving surplus funds in your pot will allow it to grow while reducing your taxable income.
You can also make the most of tax-free accounts like ISAs, ensuring any investment gains or interest earned from savings are shielded from tax.
Couples can make the most of each other’s allowances to lower overall tax bills as well. For example, if you’ve used up your capital gains tax (CGT) allowance for the tax year, you could transfer assets to a partner who hasn’t used their full allowance to lower your combined CGT bill.
Prime minister Andy Burnham plans to replace the mechanism with a double lock to help fund a new free social care service.
It comes as the cost of the uprating system rises as people live longer and there are fewer workers to fund the state pension.
Previous projections by the Office for Budget Responsibility (OBR) suggested the triple lock would have cost 9% of GDP by 2075/76, up from 5% now, in part due to the triple lock.
Helen Morrissey, head of retirement analysis at investment platform Hargreaves Lansdown, said: “We don't know exactly how much the triple lock reforms will affect future state pension incomes, but for those concerned how the latest changes may impact your retirement income it pays to be organised and plan ahead.
“Even relatively small increases in your pension contributions now could make a big difference to your retirement income in the long run and cover any shortfall.”
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