Pensioners could be set for bigger state pension boost than previously thought

Pensioners are on course for a bigger state pension boost next year than previously thought after a key figure used in the triple lock calculation was revised upwards.

Office for National Statistics (ONS) data released on Tuesday showed an upwards revision to total wage growth including bonuses for the quarter to July, up to 4.8%, from 4.7% in a previous estimate.

Under the triple lock guarantee, the state pension increases every April in line with whichever is the highest of total earnings growth in the year from May to July of the previous year, Consumer Prices Index (CPI) inflation in September of the previous year, or 2.5%.

Inflation

Inflation figures for September are due to be released next week, with the most recent figures showing that the rate of CPI inflation was 3.8% in August.

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said of the revised figures: “This has consequences for people getting state pension who can expect the amount they get to go up ever so slightly from next April.

“Those on the full new state pension could be on course for £241.30 per week rather than £241.05 while those on the full basic state pension will see their weekly payment rise to £184.90 rather than £184.75.

“Of course we are still waiting for the final piece of the triple lock puzzle to click into place with inflation figures published next week the key figure.

“However, with inflation currently hovering at 3.8% the likelihood is that average wages will be the figure used.”

Many pensioners do not receive the full state pension, with national insurance records counting towards how much people will receive