State pension set for 3.9% hike next year under triple lock as economsist question costs

Millions of pensioners in the UK will see their state pension rise next April under the triple lock. According to the Office for National Statistics, average wage growth, including bonuses, between May and July was 3.9%, which is likely to be the rate of increase for the state pension.

The flat-rate state pension, for those who reached state pension age after April 2016, will likely be £250.70 a week, or £13,036.40 a year, an increase of £488. The old basic state pension, for those who reached state pension age before April 2016, will likely be £192.10 a week, or £9,989.20 a year, an increase of £374.40, as per BBC News.

Some pensioners will be dragged into paying tax as frozen thresholds sting, with current projections suggesting pensioners will pay income tax on the state pension from 2027 for the first time, if the state pension rises by 3.9%. The Labour government has previously pledged that pensioners who rely solely on the state pension would not be required to complete a tax return, nor be chased to pay.

Brief written by urgent.news from This Is Money, BBC News — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.