State pensioners under 76 handed £246 a week in triple lock boost | Personal Finance | Finance

New state pensioners who hit state pension age on or after April 6, 2016 will see their weekly state pension payments increased again next year – to at least £246 a week thanks to the triple lock for those with a full National Insurance record.

In April, the latest triple lock boost kicked new state pensioners’ weekly DWP payments up to a maximum of £241.30 per week for those with a full National Insurance record.

That’s because the triple lock legally increases state pension income automatically each year, by one of three metrics – wage growth, inflation or a flat 2.5%, whichever is highest.

Because of the ballooning cost of the policy to the taxpayer, the triple lock has become subject of scrutiny again in recent weeks. The Tony Blair Institute last week called for the triple lock to be scrapped and replaced with a new system based on your age and health.

However, Chancellor Rachel Reeves has committed to keeping the triple lock system in place until at least the end of the current Parliament, which means the pension payments will continue to rise each year.

The minimum increase is 2%, which means that new state pensioners, i.e. those who hit state pension age after April 6, 2016, and would be aged under 76 next April (as they hit state pension age at 65 in April 2016, which gradually rose to 66 by 2020), will be handed at least another 2% boost to their state pension payments in April 2027.

That would take the weekly payments up from £241.30 to £246 for new state pensioners.

Older state pensioners, of course, would see the same 2% increase, but their payments are lower – not counting Pension Credit, or Additional Pension payments.

However, the increase is likely to be higher. In 2026, the pension payments rose by 4.8%, in line with wage growth, and in 2025, the state pension rose by 4.1%, again in line with wage growth.

In 2024, the state pension rose by a bumper 8.5% in line with inflation, one of the largest increases ever seen.

For the year, the pension payments for a new state pensioner would rise to approximately £12,797.94, which is beyond the £12,570 tax-free Personal Allowance threshold.

It would mean that all state pensioners on the new state pension would owe tax from April 2027 – however, the Chancellor has announced a special exemption from tax for state pensioners who only have state pension income and no other income(like savings, work or rental income).

The exact details are yet to be revealed, but should be laid out before the next Budget this coming November.

Tom Selby, director of public policy at AJ Bell, said on the back of the TBI report: “The triple lock has become a totemic symbol of support for older workers and pensioners, with no political party yet prepared to tackle the question of how we fund the subsequent growth in state pension spending over the long term.

“Inevitably, a state pension which rises faster than wages and inflation over time can’t be sustained indefinitely without massive cutbacks elsewhere.”