What is the triple lock and how much is the state pension worth?
Summary
The state pension in the UK is set to increase by £488 a year due to the "triple lock" system, which raises pensions by the highest of inflation, wage growth, or 2.5%. The state pension age is also rising from 66 to 67, and the increase is expected in April 2027, pending government confirmation.Key Facts
- The state pension pays people who have reached the qualifying age and paid enough into National Insurance (NI).
- Since April 2026, the new flat-rate state pension is £241.30 per week (£12,547.60 a year) for those reaching pension age after April 2016.
- The old basic state pension is £184.90 per week (£9,614.80 a year) for those reaching pension age before April 2016.
- The triple lock raises pensions each year by the highest of inflation (measured by CPI), average wage growth, or 2.5%.
- Wage growth of 3.9% is expected to set the 2027 pension increase at £250.70 per week for the new state pension.
- The triple lock system was introduced in 2010 to protect pension value against rising living costs or wages.
- The pension age is increasing from 66 to 67 for many people.
- The cost of the triple lock is expected to reach £15.5 billion by 2030, three times higher than originally predicted.
- The increase may push the state pension above the income tax personal allowance, meaning some pensioners might pay tax on their pension.
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