State Pension to increase by 4.1% as CPI drops to 1.7%
State Pension increases of 4.1% for 2025/26 will outstrip general price rises for the second year running.
State 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.
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