Government announces £550 boost for 13 million pensioners next year
State Pension is set to rise faster than inflation from April
The Chancellor, Rachel Reeves, is expected to confirm that 13 million pensioners will see their State Pension rise above inflation from next April.
Those receiving the full rate of the new State Pension could gain more than £550 a year, providing a significant boost ahead of the upcoming Budget.
The increase is part of the government’s ongoing commitment to the Triple Lock, ensuring that pensions grow each year by the highest of inflation, average earnings growth, or 2.5%.
Starting next April, the full new State Pension is expected to reach just over £240 per week. This represents an extra £550 annually, around £120 more than if it had been increased only in line with inflation.
Meanwhile, the full basic State Pension is set to rise by roughly £440 a year.
The announcement comes as the government continues efforts to ease the cost of living. Measures include freezing rail fares and prescription charges next year, saving households millions of pounds.
In addition, crackdowns on ticket touting are expected to reduce costs for music fans across the country.
At the Budget, the Chancellor will outline further plans to lower household bills, tackle inflation and address the rising cost of living.
Chancellor of the Exchequer Rachel Reeves said:
“Whether it’s our commitment to the Triple Lock or to rebuilding our NHS to cut waiting lists, we’re supporting pensioners to give them the security in retirement they deserve."
She added:
“At the Budget this week I will set out how we will take the fair choices to deliver on the country's priorities to cut NHS waiting lists, cut national debt and cut the cost of living.”
The government emphasises that the State Pension remains a cornerstone of financial security for older citizens.