The UK’s state pension is set to rise more than expected after figures from the Office for National Statistics (ONS) show it has revised average earnings growth for May-July from 4.7% to 4.8%.
This means the state pension will rise by 4.8% next April, or by around £574.60 a year, up from the previous estimate of £562. This will take the new state pension to £12,534.60 a year.
Steve Webb, partner at LCP, said: “We can now be pretty certain that the new state pension and the basic state pension will rise by 4.8%.
“This will keep the headline rate of the state pension below the income tax threshold for one more year, but it will go above the tax threshold in 2027 if allowances do not rise”.
| 2025/26 | 2026/27 | 2025/26 | 2026/27 | ||||
| £pw | £pw | increase | £pa | £pa | increase | ||
| Basic state pension | £176.45 | £184.90 | £8.45 | £9,175.40 | £9,614.80 | £439.40 | |
| New state pension | £230.25 | £241.30 | £11.05 | £11,973.00 | £12,547.60 | £574.60 |
