UK state pension to rise by more than £400 a year, say reports

Reports suggest that the UK state pension will increase by over £400 per year due to the triple lock in April.

The government is expected to raise the state pension based on the average earnings data that will be published next week. This information was reportedly obtained from the treasury's internal calculations, as revealed by the BBC.

The adjustments will raise the total state pension for men born after 1951 and women born after 1953 to approximately £12,000 by 2025 and 2026, following a £900 boost in 2023.

Retirees who stopped working before 2016 and are qualified for the additional state pension could see a yearly raise of £300.

The choice to raise pensions will be decided by Liz Kendall, the secretary of state for work and pensions, before the budget in October. Despite this, Rachel Reeves, the chancellor, confirmed on Monday that the government will continue to support the triple lock until the current parliament ends.

The prediction was made shortly after the government's choice to significantly limit winter fuel payments. The chancellor's move to eliminate the winter fuel allowance for most households has faced opposition within her own party.

Reeves decided to implement an eligibility requirement for the payments, allowing only those receiving pension credit to qualify. Some Labour MPs criticized this move, stating that it could result in many elderly individuals facing difficulties in covering their household expenses during the upcoming winter season.

An ex-pensions minister informed the Guardian that around 83% of pensioners who are struggling financially could potentially lose their winter fuel payments due to the government's proposal to restrict the allowance.

A recent study showed that just under half of individuals who received state pension payments last year were getting the complete weekly amount. Additionally, approximately 150,000 people were receiving less than £100 per week in pension benefits.

The latest figures showing an increase above the rate of inflation could potentially sway the government's decision prior to a vote scheduled for next Tuesday. This comes after opposition and Labour backbenchers, such as Jessica Asato, Melanie Onn, and Neil Duncan-Jordan, have raised concerns and even put forward a motion in the Commons urging for a delay and reassessment of the proposed plans.

Reeves informed Members of Parliament that the standard state pension has increased by £900 compared to last year. Additionally, it will continue to rise in April of next year due to the triple lock policy that has been guaranteed for the entirety of this government's term.

The Treasury has been asked to provide a statement.