The full new State Pension will rise by 3.9% in April 2027, to £250.70 a week — an increase of £9.40 a week, or about £489 a year — the Budget on October 28 confirmed.
The rise follows the triple lock, which raises the pension each April by whichever is highest of three figures: CPI inflation in the previous September, average earnings growth from May to July, or 2.5%. This year, earnings growth of 3.9% beat September inflation of 3.5%, so earnings set the rise. The full new pension, currently £241.30 a week or £12,547.60 a year, will become £250.70 a week, or £13,036.40 a year.
The Office for National Statistics published September’s inflation figures on October 21, completing the inputs for the calculation. The government has also announced plans to reform the triple lock from April 2030.
The tax catch
The rise pushes the full new pension above the frozen personal allowance of £12,570 — the amount of income a person can earn before paying income tax, frozen until April 2031. On the new figures, £466.40 of the annual pension sits above the allowance, which could mean about £93 in tax for a basic-rate taxpayer with no other income.
There is an exemption for pensioners whose sole income is the State Pension, according to reports, but anyone with a private pension, savings interest or other income should check their position. The new rate takes effect from the first full week of April 2027. Anyone wanting to check their own forecast can use the State Pension forecast service on GOV.UK.
Who gets what
The full new State Pension is paid to people who reached State Pension age on or after April 6, 2016. People who reached pension age before that date are on the old basic State Pension, which rises by the same 3.9% under the triple lock but from a lower starting rate.
The 3.9% rise is above inflation — September CPI was 3.5% — so pensioners will see a small real-terms increase. The triple lock has been in place since 2010, and Prime Minister Andy Burnham has said the Labour government will keep it until the end of the current Parliament.
