People on Basic State Pension could be due up to £718 each month from next April
20.06.2024 - 08:57
/ dailyrecord.co.uk
Some 9.7 million people on the Basic State Pension could see weekly payments rise by up to £40 each month from next April, under the Triple Lock policy. Both the Conservatives and Labour Party have pledged to maintain the Triple Lock for the duration of the next parliament, if they win the General Election on July 4.
Under the Triple Lock, the New and Basic State Pensions increase each April in-line with whichever is the highest of the average annual earnings growth from May to July, the Consumer Price Index (CPI) in the year to September or 2.5 per cent. The latest figures from the Office for National Statistics (ONS) show that the CPI inflation rate dropped from 2.3 per cent in April to 2.0 per cent in May.
At present, this makes it the lowest measure of the Triple Lock while earnings growth is currently the highest - and the one to watch. Annual growth for regular earnings (excluding bonuses) was 6.0 per cent in February to April 2024 while annual growth in employees’ average total earnings (including bonuses) was 5.9 per cent.
If the earnings growth measure for May to July - which is due to be published by the ONS on August 13 - remains at 5.9 per cent (including bonuses), it will almost certainly be the determining factor for the State Pension uprating in April 2025.
The full Basic State Pension is currently worth £169.50 each week, or £678 every four-week pay period. An annual uprating of 5.9 per cent would see payments go up to £179.65 per week, £718.60 every four-week pay period, or £9,341.80 over the 2025/26 financial year
Similarly, 2,6 million people are currently receiving New State Pension payments of up to £221.20 each week, or £884.80 every four-week pay period. An uprating of 5.9 per cent would see
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