State pension ‘could rise by more than £400 next year’

Changes would take the full state pension to around £12,000 in 2025/26, after the £900 increase in 2023

Jessica Coates
Wednesday 04 September 2024 06:56 BST
The new state pension system was introduced in 2016 (Alamy/PA)
The new state pension system was introduced in 2016 (Alamy/PA)

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The new full state pension could rise by more than £400 per year, it has been reported.

The Treasury’s internal working calculations, reportedly seen by the BBC, revealed the pension could be boosted as a result of April’s triple lock.

Changes would take the full state pension to around £12,000 in 2025/26, after the £900 increase in 2023.

Pre-2016 retirees who may be eligible for the secondary state pension could see a £300 per year increase.

The new state pension system was introduced in 2016 to provide a sustainable, clear foundation pension for people to build their private savings.

Any decision on a pension increase will be made by Secretary of State Liz Kendall ahead of October’s budget.

Chancellor Rachel Reeves on Monday reaffirmed the Government’s backing of the triple lock until the end of this Parliament.

The report comes amid backlash over the Government’s decision to ditch the winter fuel allowance for the majority of households.

Analysis released last week revealed only around half of people receiving the new state pension last year were getting the full weekly amount – and around 150,000 were on less than £100 per week.

Royal London said that 1,737,342 of 3,407,567 people receiving the new pension received the full weekly amount last year.

It made the calculations using Department for Work and Pensions data from spring 2023.

The full state pension for 2024/25 is £221.20 a week, up from £203.85 last year.

The Treasury has been contacted for comment.

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