Summary
The UK's state pension is expected to increase due to the triple lock system, which raises pensions based on inflation, wage growth, or a set percentage, whichever is highest. This adjustment is expected to be driven by a 4.7% rise in average wages. The triple lock aims to ensure pensions keep pace with living costs and wages.
Key Facts
- The triple lock is a system that increases the UK state pension yearly based on inflation, wage growth, or 2.5%, whichever is highest.
- The state pension is a regular payment for people who have reached pension age and have sufficient National Insurance contributions.
- Average wages rose by 4.7% from May to July, likely influencing the pension increase.
- The new flat-rate state pension, for those reaching pension age after April 2016, is expected to rise to £241.05 per week.
- The old basic state pension, for those reaching pension age before April 2016, is expected to rise to £184.75 per week.
- The triple lock was introduced in 2010 to ensure pensions keep up with living costs and wages.
- The cost of the triple lock is projected to reach £15.5 billion by 2030.
- The state pension age is gradually increasing, with future rises planned.
