State pension to rise by over £400 next year

The government predicts that the increased full state pension will rise by over £400 in cash each year, surpassing inflation rates.

The calculations used internally by the BBC show a high likelihood that the state pension will be raised based on the average earnings data set to be released next week.

The reason for this is the triple lock system, which ensures that the state pension goes up every April by the highest of three numbers: inflation rate, average UK wage increase, or 2.5%.

The announcement is causing criticism for the government after they chose to reduce the winter fuel allowance for the majority of retirees.

Since many individuals will no longer receive the payment, their total income is expected to rise by around £100 to £200.

The state pension will rise to about £12,000 next year for men born after 1951 and women born after 1953, following a £900 raise last year.

Retirees who stopped working before 2016 and were able to receive an additional state pension may expect at least a £300 raise in the basic state pension to reach £9,000 next year under the previous system.

Liz Kendall, the pensions secretary, will make the ultimate choice about the uprating before the Budget next month. However, on Monday, Chancellor Rachel Reeves reaffirmed the government's support for the triple lock policy until the end of this parliamentary term.

The commitment is a costly pledge made by all the major parties to address the £130 billion annual state pension bill.

In the triple lock system, the state pension increases every April based on the highest of three measures.

The triple lock policy was implemented by the government formed by a coalition of Conservatives and Liberal Democrats in 2010.

The goal was to make sure that the state pension kept up with inflation and the rise in wages for the working population.

The government is proud of the fact that the triple lock provides a higher increase than inflation. This is especially important now that the winter fuel payment has been eliminated for most households.

Advocates and political parties against the government argue that more needs to be done to support the many elderly households, particularly in rural regions, who are living in poverty and will be deprived of their winter assistance.

The ex-pensions minister, Sir Steve Webb, has warned that approximately 1.6 million elderly individuals who are currently struggling financially may face the possibility of losing their winter fuel payments.