State pension set to rise £550 next year under triple lock
How much the state pension is set to rise by next year
- The state pension is set to increase by over £550 annually from April next year, due to the triple lock mechanism.
- This rise, based on 4.7% earnings growth, will bring the full new state pension to £12,534 per year, an increase of £561.
- The increased state pension will mean recipients are very close to the frozen personal allowance of £12,570, potentially leading to more pensioners paying income tax on minimal additional income.
- Rachel Reeves, the Chancellor, confirmed the government's commitment to the triple lock, aiming to provide security for pensioners.
- The proximity of the state pension to the personal allowance creates a significant political and economic challenge for the government, particularly as the allowance is frozen until 2028.