Full state pension to increase by £460 in April 2025 as 'triple lock' boost affects over 1mil UK pensioners

While this is the smallest increase in nearly four years, it means pensioners who reached state pension age after April 2016 will see their full state pension increase to £11,962.60 per year, a rise of £460.

This increase is based on the “triple lock” guarantee, which ensures that the state pension rises each April in line with the highest of three measures: average earnings growth from May to July, CPI inflation in September, or 2.5%. Since inflation is expected to be lower than wage growth, the wage figure is likely to be used for the pension increase. However, the figures are subject to potential revisions, and the government will confirm the planned increase in the autumn.

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, noted that while the increase is positive, it may not fully compensate for the loss of the winter fuel allowance for millions of pensioners. She said: “There’s every chance it’s not enough to placate those pensioners still reeling from the loss of the winter fuel payments, especially given how close this is edging to busting the personal allowance.”

Morrissey also warned that the new pension amount is approaching the £12,570 personal tax allowance threshold, saying: “Given that the freeze to this threshold is expected to remain in place until 2028, it raises the spectre of the full state pension alone taking pensioners over it and into the realms of paying income tax during the next few years.”

The ONS also reported that regular wage growth fell to 5.1% year-on-year over the same period, marking the lowest level since July 2022. Despite this, UK workers saw their pay rise by 3%, down slightly from 3.2% in the previous three months when accounting for inflation.

Liz McKeown, director of economic statistics at the ONS, added: “Growth in total pay has slowed markedly again as one-off payments made to many public sector workers in June and July last year continue to affect the figures. Basic pay growth also continued to slow, though less sharply.”