Zarah ChoudharyState Pension increases of 4.1% for 2025/26 will outstrip general price rises for the second year running.
Under ‘triple lock’ arrangements, the New State Pension is set to rise by £472 a year to £11,973 while Basic State Pension will increase by £361 a year to £9,175.
The Labour Government has promised to maintain the ‘triple lock’ uprating mechanism which raises State Pensions by the higher of average earnings growth, inflation or 2.5%.
The Consumer Price Inflation (CPI) figure of 1.7% revealed today (16th October 2024) was below the key average earnings growth measure of 4.1%, leaving the latter as the uprating factor for 2025/26.
Stephen Lowe, group communications director at Just Group, said: “Many pensioners will see today’s news as bittersweet.
“Around 10 million have lost winter fuel payments of £200 to £300 due to the Government’s decision to restrict the benefit to lower income pensioners receiving Pension Credit.
“Taking that into account the 4.1% rise doesn’t look so generous, especially as energy costs have recently risen.
“Large numbers of pensioners are heavily reliant on State Pension.
“Even a full New State Pension next year will only make up about 83% of the £14,400 income needed to achieve the Pensions and Lifetime Savings Association’s ‘minimum’ Retirement Living Standard.
“Those pensioners who are struggling on low incomes should ensure they are claiming all the benefits they are entitled to, particularly Pension Credit which tops up income and is the gateway to other cash help that can total thousands of pounds.
“Recent government figures suggest that up to 760,000 pensioner households could be missing out on around £1,900 a year each by failing to claim, with take up lower among couples and those aged over 75.
“It only takes a few minutes to check. The Government website has links to useful third-party calculators while other good sources are Citizens Advice, local councils and charities.”
