State Pension Expected to Rise by £488 Annually Under Triple Lock
UKPulse Money Desk
The new state pension is expected to increase by £488 a year from April 2027 due to the triple lock, which guarantees annual rises based on inflation, wage increases, or 2.5%, whichever is highest. This increase is likely to be determined by a 3.9% rise in wages.
- The new flat-rate state pension is expected to rise to £250.70 a week, or £13,036.40 a year, from April 2027.
- The old basic state pension is likely to increase to £192.10 a week, or £9,989.20 a year, from April 2027.
- The state pension age has begun to increase from 66 to 67, starting in April 2026.
The new state pension is expected to see an annual increase of £488 from April 2027, a result of the triple lock arrangement. This would take the flat-rate state pension to an estimated £250.70 a week, or £13,036.40 a year.
For those on the old basic state pension, an increase of £374.40 a year is anticipated, bringing it to £192.10 a week, or £9,989.20 a year. The government is expected to confirm this rise, possibly in October's Budget.
The triple lock ensures the state pension increases each April in line with the highest of three measures: September's inflation (Consumer Prices Index), average total wage increases from May to July of the previous year, or 2.5%. The likely determinant for the April 2027 increase is a 3.9% rise in wages.
The state pension age has also started to increase from 66 to 67, a change that began in April 2026. This rise affects individuals born on or after 5 April 1960. A government review is currently considering whether to delay a second phase, which would see the state pension age rise to 68 between 2044 and 2046.
Why this matters: The expected increase in the state pension could mean that the flat-rate state pension exceeds the personal allowance, potentially making some pensioners liable for income tax.
What this means for you: If you receive the new flat-rate state pension, the expected increase in April 2027 could mean you become liable to pay approximately £91 in income tax next year, as it would take your pension above the personal allowance of £12,570.