The state pension will increase by 8.5% from April 2024.
Jeremy Hunt, Chancellor of the Exchequer, announced the rise in the Autumn Statement, with the increase based on average earnings data published in September and in line with the government’s triple lock policy on pension changes. Hunt confirmed that the state pension will increase by 8.5%, or £221.10 a week, resulting in pensioners receiving around £900 more a year.
Patrick Thomson, head of research and policy at Phoenix Insights, said: “State pensioners will welcome news that the government has committed to maintaining the triple lock without adjustments. The triple lock has been an important policy to ensure retirees’ income has kept pace with rising prices or increases in the working population’s wages, and today’s announcement means the state pension will rise by 8.5% next April.
“Decisions around the state pension carry huge significance given the impact on a large proportion of the electorate, so any adjustment to the triple lock could have led to wider political ramifications in the lead up to the next general election.”
Paul Waters, partner at Hymans Robertson, added: “Now was not the time to tweak the triple lock. The increased income that it provides right now, especially to deal with the high cost of living, will have been desperately needed by pensioners, particularly those on low incomes. The state pension is already relatively low when measured against recommended UK minimum living standards and many European countries. It needs a long-term solution, so, once the state pension is at a more meaningful level for the pensioners relying on it, the mechanism of ensuring fair but affordable increases must be addressed. Deep-rooted reforms that consider the interaction of pension savings, tax, and other benefits including care are needed.”
George Sweeney, pension and investing expert at finder.com, said: “The state pension has seen some bumper rises, with 10.1% in the last uplift and now an 8.5% increase on the horizon for April 2024. The state pension has been increasing to keep pace with the rest of the economy, but this becomes increasingly more challenging and expensive.”