What is the state pension triple lock?

Each spring, pensioners get a financial boost thanks to the income-raising power of the state pension triple lock. In April this year, their payments increased by 4.1%.

The idea behind the policy is that it protects the state pension from being devalued when prices rise. It does this by increasing payments in line with inflation, wage growth, or by 2.5% – whichever measure is highest.

The triple lock was first introduced by the coalition government after the 2010 election and has since become a political hot potato. While it is loved by pensioners, it is expensive for the taxpayer.

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The annual cost of the triple lock is likely to reach £15.5 billion by 2029/30, according to the Office for Budget Responsibility – around three times higher than initial expectations.

September is an important month when it comes to the triple lock, as it is September’s inflation figure (published in October) that the government looks at when setting state pension payments for the next year.

The wage growth figure that is used covers May-July, but is published in September.

Based on the current outlook, “it seems likely we will see a state pension increase somewhere in the 4-4.5% ballpark for next year,” said Helen Morrissey, head of retirement analysis at Hargreaves Lansdown.

This is because the Bank of England has forecast that inflation will hit 4% in September. Meanwhile, wage growth (including bonuses) is currently at 4.6%. Although it has been drifting downwards, it is unlikely to drop dramatically in next month’s report.

If Morrissey is right, it means someone on a new state pension will see their payments rise by around £479-£538 per year. Someone on a full basic state pension would see their payments rise by £367-£413.

“These increases would be much smaller than the huge boosts we’ve seen in recent years, but they will be welcome nonetheless,” she said.

“The increase won’t be implemented until April 2026 and it’s to be hoped that inflation will have dipped significantly by that point so it should give a bit more breathing space to pensioner budgets that have been sorely stretched.”

How much state pension do I get?

The state pension is a regular payment from the government that most people can claim when they reach state pension age (currently 66 years old). The exact amount you are entitled to depends on your record of National Insurance contributions (NICs).

By paying National Insurance, you effectively pay into the UK-wide kitty from which state pension payments are paid. You can see what your record looks like by using the government’s “check your state pension forecast” tool.

New state pension

Assuming you are a man born after 6 April 1951 or a woman born after 6 April 1953, you should fall under the new state pension. You will usually qualify to receive some money if you have 10 years of NICs, and get the full amount if you have 35 years of NICs.

If you are on the full amount of the new state pension, you will currently receive £230.25 per week (£11,973 a year).

Basic state pension

Men born before 6 April 1951 and women born before 6 April 1953 fall under the old system – the basic state pension. The eligibility rules are slightly different:

• Men born before 1945: You need a minimum of 11 qualifying years to get any state pension, and 44 years for the full amount.
• Men born between 1945 and 1951: You need a minimum of one qualifying year to get any basic state pension, and 30 years for the full amount.
• Women born before 1950: You need a minimum of 10 qualifying years to get any state pension, and 39 years for the full amount.
• Women born between 1950 and 1953: You need a minimum of one qualifying year to get any basic state pension, and 30 years for the full amount.

The full amount of this payment is currently £176.45 a week (£9,175.40 a year).

How much did the state pension increase by in 2025/26?

The state pension increases each year in April at the start of the new tax year. Thanks to another set of above-inflation wage growth figures, the state pension rose by 4.1% in April 2025.

The full new state pension increased from £221.20 a week (£11,502 a year) to £230.25 (£11,973). The full basic state pension rose from £169.50 a week (£8,814 a year) to £176.45 (£9,175).

How much does the triple lock cost the UK?

Under the current system, the state pension is one of the UK’s biggest outlays. In 2025/26, the government has estimated that it will spend £175 billion on benefits for pensioners, with £146 billion of this being spent directly on the state pension.

As introduced previously, the cost of the triple lock specifically is expected to reach £15.5 billion per year by 2029/30.

“Many retirees rely significantly on the state pension to sustain their standard of living, particularly amid persistently high inflation and interest rates. Yet, while its role in safeguarding older generations is well-meaning, the long-term fiscal implications of the triple lock cannot be ignored,” said Jon Greer, head of retirement policy at wealth management firm Quilter.

He added that, “despite its good intentions, the triple lock lacks a defined benchmark for pension levels and risks placing an unsustainable burden on both taxpayers and future generations”. The 2.5% minimum uplift often faces particular criticism, with some commentators calling it arbitrary.

Many commentators including the Institute for Fiscal Studies (IFS) have suggested replacing the triple lock with an alternative system, such as one based on inflation and average earnings growth. However, the government has promised to safeguard the measure for the duration of this parliament.

Will tax soon be due on the state pension?

With state pension payments creeping up each year, they are getting closer and closer to the top of the personal allowance, which has been frozen at £12,570 since 2021. This means pensioners could theoretically have to pay income tax on their state pension in the near future.

Currently, the full new state pension is £11,973 – just £597 shy of the basic rate tax threshold. Steve Cameron, pensions director at financial services company Aegon, thinks it will breach this threshold within two years.

“With the triple lock paying a minimum of 2.5%, the full new state pension is certain to be above the personal allowance for the 2027/28 tax year, creating an income tax liability for those even with no other income,” he said.

“While the tax due will be very small, this will cause concern to many pensioners and become an admin nightmare for HMRC. It may be that the government will introduce some form of exemption specific to affected state pensioners, although this could be seen as unfair if it didn’t apply to those of working age too.”