In just a few weeks, millions of state pensioners across the UK will see an increase in their payments. This boost, which will take effect from April 2025, is part of the government’s triple lock policy, designed to help pensions keep up with the rising cost of living. The exact amount of the increase is usually confirmed in March, but it’s expected to provide much-needed relief to retirees.
Under the triple lock, state pensions are guaranteed to rise by the highest of three measures: inflation, average wage growth, or a minimum of 2.5%. For the 2025/26 financial year, this means the new state pension (for those who retired after April 2016) will increase to a maximum of £230 per week. Meanwhile, those on the old basic state pension (for those who retired before 2016) will see their weekly payments rise to up to £176.
This increase comes at a time when many pensioners are struggling with rising living costs. Inflation rose by 3% in the 12 months to January, and households are also facing higher council tax bills and energy prices, which are set to go up again in April. The triple lock aims to ensure that pensioners’ incomes don’t fall behind these rising expenses.
However, there’s growing uncertainty about the future of the triple lock. While the current government has committed to keeping it in place, some experts and politicians have raised concerns about its long-term sustainability. Kemi Badenoch, a Conservative leader, has hinted that changes could be made if her party is elected. On the other hand, Labour has said it has no plans to scrap the policy.
Specialists at Spencer Churchill Claims Advice have warned that the triple lock has been a crucial support for pensioners, helping them keep up with the cost of living. But with pressure on public finances and an ageing population, its future is far from guaranteed. They caution that if the triple lock is reduced or removed, many pensioners—especially those who rely on the state pension as their main source of income—could face significant financial challenges.
The experts also stress the importance of planning ahead. They advise people to explore other ways to save for retirement, such as workplace pensions, private pensions, or investments. While the state pension increase is helpful, rising costs for essentials like food, energy, and housing are eating into people’s budgets. “Any increase in pensions is beneficial,” they say, “but it’s crucial to have additional income sources to maintain your standard of living.”
For now, the upcoming pension increase is a welcome boost for retirees. But with the future of the triple lock in question, experts urge pensioners to take steps to secure their financial stability, whether by checking their eligibility for additional benefits or exploring other savings options.
