State Pension Payments Prediction
State Pension Payments Predicted to Rise by over £550 next year.
The state pension is expected to rise in April 2026 due to UK’s Triple Lock mechanism, which ensures that pension payments increase annually by the highest of 3 measures.
What is Triple Lock?
The Triple Lock was introduced in 2011 to protect pensioner’s income from losing value due to inflation or stagnant wage growth. Each year, the state pension increases by the highest of either:
- Consumer Price Index (CPI) inflation (measured in September of the previous year).
- Average earnings growth (measured from May to July of the previous year).
- A fixed minimum of 2.5%
This guarantees that pensioners’ income keeps pace with the cost of living and general wage increases, or at least grows modestly even in low-inflation years.
2026 State Pension’s Expectations
Forecast suggest that average earning growth (currently around 4.6%) is likely to outpace inflation (around 3.8%), meaning the Triple Lock will trigger a 4.6% increase in state pension payments.
This means:
- The full new state pension could rise from £11,973 to £12,524 annually.
- Weekly payments may increase from £230.25 to £240.84.
- If inflation ends up being higher than earnings growth the increase will be based on that instead.
This rise is particularly significant because the personal allowance for income tax is frozen at £12,750 until 2028, meaning many pensioners may soon be liable for income tax on their state pension alone.
This article is intended as a brief guide to the subject matter and in no way constitutes advice or recommendation. The article is based on our understanding of current and proposed legislation which could be subject to change at any time. Specific financial and legal advice should always be sought before taking any action.
