5 October 2023
State pensions may be set to receive an 8.5% increase in April 2024 under the triple lock mechanism, which will bring the value of the new State pension up to over £11,500. Under the triple lock, the State pension rises each year in line with whichever is the highest out of three factors: wage growth, inflation or 2.5%.
Average wage growth is running at 8.5%, according to figures from the Office for National Statistics (ONS) – and it’s unlikely that September’s inflation figure will be higher.
Basing the triple lock on these figures would see the full new State pension rise from £203.85 per week to £221.20 per week, while the full basic State pension would rise from £156.20 per week to £169.50 per week.
However, the media has suggested that the government is looking for ways to reduce the bill by, for example, excluding bonuses from the calculation of wage growth.