Brief
State pension to rise 3.9% in 2027, topping £13,000 under triple‑lock
ONS data shows wage growth outpacing inflation, triggering the highest triple‑lock rise on record.
By Felo News Desk · Published
Pensioners are set for a 3.9% boost to the state pension in April 2027, the Office for National Statistics (ONS) confirmed on Wednesday. The increase, driven by wage growth that exceeds both CPI inflation and the 2.5% floor, will raise the full new state pension to £250.70 a week – just under £500 more per year than the current level.
What happened
The ONS reported that CPI inflation was 3.5% in September, up from 3.1% in August, but wage growth for the year stood at 3.9%, the highest figure used in the triple‑lock calculation. Under the triple‑lock, the state pension rises each April by the highest of CPI, average earnings, or 2.5%. With earnings now the top figure, the full new state pension will rise from £241.30 to £250.70 per week, while the full basic state pension will move from £184.90 to £192.10 per week, equating to about £9,989 a year.
What the reports add
The article notes that many pensioners do not receive the full state pension, and that the personal tax allowance remains frozen at £12,570. As a result, the annual new state pension could exceed the tax‑free allowance, reaching roughly £13,036. The government has said that pensioners who rely solely on the state pension – with no private or workplace pension – will not be liable for income tax on that amount, though details are pending in the upcoming Budget.
What was said
Rachel Vahey, head of public policy at AJ Bell, told Standard, “Pensioners are set to receive just shy of £500 extra in their state pension next year. The full new state pension is set to surge past £13,000 for the first time, leaving the frozen £12,570 personal allowance trailing in its wake. The Government has promised that those living solely on a state pension above the allowance will not pay income tax on it – but the crucial detail on how that will work is still missing.”
Claire Trott, head of advice at St James’s Place, added, “While the uplift in income will be welcomed by many, it also marks a significant milestone, with the full new state pension exceeding the £12,570 personal allowance for the first time. Although those receiving only the state pension are not expected to face a tax bill, pensioners who draw on other sources of income may find themselves with a higher tax liability as a result.”
How it came about
The triple‑lock mechanism, introduced in 2010, ties pension increases to the highest of inflation, earnings or 2.5%. Recent ONS data showing strong wage growth has triggered the largest rise under the scheme. The government’s pledge to protect pension‑only earners from tax will be clarified in the Budget, which is expected next week.
Key facts
- The full new state pension will rise to £250.70 a week in April 2027. (standard.co.uk)
- Wage growth of 3.9% is the highest figure in the triple‑lock calculation. (standard.co.uk)
- The annual new state pension could exceed the £12,570 personal tax allowance, reaching about £13,036. (standard.co.uk)
- The government says pensioners who rely solely on the state pension will not pay income tax on it, pending Budget details. (standard.co.uk)
Sources
- [1] standard.co.uk — originally reported as “Full new state pension set to top £13,000 under triple lock guarantee”
