Millions of UK pensioners will see a State Pension increase from April 2026, following an upward revision in wage growth figures used in the Triple Lock mechanism. The change, announced by the Office for National Statistics (ONS), increases the earnings growth rate from 4.7% to 4.8%, raising expectations for the next annual uprating.
While the final decision awaits September’s inflation figure, current forecasts suggest that average earnings growth will be the highest of the three Triple Lock criteria, triggering a 4.8% rise in both the New and Basic State Pensions.
Triple Lock
The Triple Lock ensures that the State Pension rises each year by the highest of:
- Average earnings growth (May–July)
- CPI inflation (September)
- 2.5%
The latest data shows average wage growth at 4.8%, making it likely that this figure will determine next year’s pension increase. August CPI stood at 3.8%, and unless September’s figure surpasses 4.8% – which is unlikely – the wage growth rate will be used.
New Rates
If the 4.8% increase is confirmed, the following new weekly State Pension rates would apply from April 2026:
| Pension Type | Current Weekly | New Weekly (Est.) | Four-Weekly | Annual Amount |
|---|---|---|---|---|
| New State Pension | £230.25 | £241.30 | £965.20 | £12,547 |
| Basic State Pension | £176.45 | £184.90 | £739.60 | £9,614 |
These increases reflect a £11.05 weekly rise for the New State Pension and £8.45 for the Basic State Pension.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said:
“Those on the full New State Pension could be on course for £241.30 per week rather than £241.05. With inflation at 3.8%, wage growth is likely to set the uprating for April 2026.”
Tax Limit
However, the increase brings many pensioners closer to the Personal Allowance threshold – the level of income you can earn before paying income tax. The full New State Pension at £12,547 per year leaves just £23 below the £12,570 threshold.
That means more pensioners could soon begin paying tax unless the Personal Allowance is raised. But the Labour Government has confirmed that the threshold will remain frozen at £12,570 until April 2028, potentially drawing more retirees into the tax net.
Eligibility
To receive the full New State Pension, you generally need around 35 qualifying years of National Insurance contributions. Those who were contracted out may receive less.
The Basic State Pension, available to those who reached State Pension age before April 6, 2016, requires 30 years of contributions for the full rate. Additional State Pension amounts and deferred pensions also rise annually, but these are tied to the September CPI figure, not the Triple Lock.
Budget
The official uprating will be confirmed by Chancellor Rachel Reeves in the Autumn Budget on November 26. The Budget will also confirm if any additional adjustments will be made to tax thresholds, although none are currently expected.
If CPI reaches the Bank of England’s 4% forecast, the annual increase would still reflect the 4.8% wage growth, since the Triple Lock uses the highest of the three measures.
IncomeTax
Pensioners must pay income tax if total income exceeds £12,570, including income from:
- New or Basic State Pension
- Additional State Pension
- Private pensions (personal or workplace)
- Employment or self-employment
- Taxable benefits (e.g., Carer’s Allowance)
- Rental income, interest, dividends
The government offers an online tool at GOV.UK to check if you must pay tax on your pension. You will need:
- The amount of State and private pension income you receive
- Any other taxable income for the tax year (April 6–April 5)
Note: The tool does not apply if you have foreign income or claim special allowances like Marriage Allowance or Blind Person’s Allowance.
The 4.8% State Pension increase offers a boost for millions of retirees, helping them manage rising costs. But with tax thresholds frozen, many may find themselves crossing into taxable territory for the first time. It’s important to check your full income picture and plan accordingly for the 2026–2027 tax year.
FAQs
How much will the New State Pension be in 2026?
It will rise to £241.30 per week from April 2026.
What is the new Basic State Pension amount?
£184.90 weekly, up from £176.45.
Will more pensioners pay tax in 2026?
Yes, due to the Personal Allowance freeze at £12,570.
When is the increase officially confirmed?
In the Autumn Budget, on November 26, 2025.
