State pension set to rise nearly £500 next year

The state pension is set to rise by 3.9 per cent next April, according to new figures.

Data published by the Office for National Statistics (ONS) on Tuesday showed weekly wages grew by 3.9 per cent between May and July.

The triple lock guarantee means the government will increase the state pension by whichever figure is highest out of wage growth, inflation, or 2.5 per cent.

If confirmed, a 3.9 per cent increase will raise the full new state pension by around £9.40 a week, lifting payments from £241.30 to approximately £250.70 per week

Because Consumer Price Index (CPI) inflation is projected to remain below the 3.9 per cent wage benchmark over the key September measurement period, earnings growth is expected to determine the final rate.

The Bank of England forecasts inflation will peak at around 3.2 per cent later this autumn, well below the three-month wage growth average.

Official September CPI inflation figures, which serve as the alternative threshold in the calculation, will be published on 21 October.

Unless inflation experiences an unexpected spike, the 3.9 per cent increase will see the full new state pension rise, providing a boost to millions of pensioners across Britain.

The Department for Work and Pensions will formally confirm the revised payment rates during the Autumn Statement after the data is finalised next month.