State pension set to rise by £460 in 2025

The full state pension is set to increase by £460 a year from April 2025, according to the latest wage growth figures. The official figure has not yet been confirmed and will be made by work and pensions secretary Liz Kendall around the time of the autumn budget in October.

What is the state pension 'triple lock'?

State pensions are adjusted annually through the 'triple lock' arrangement, which increases pensions by the highest of three measures - 2.5%, average earnings growth, or inflation. As earnings, including bonuses, grew by 4% in the three months to July, outpacing inflation at 2.2%, the rise in pensions next year will be driven by wage growth.

The government has committed to keeping the pensions triple lock, which was introduced in 2010 by the Conservative-Liberal Democrat coalition to ensure the value of the state pension keeps pace with the income of working-age people or the cost of living.

How much will the state pension be worth?

Currently, over 12 million people in Britain receive the state pension. Estimates from the latest Office for National Statistics (ONS) state:

• those who reached state pension age after April 2016 are expected to receive a rise to £230.05, which amounts to £11,962.60 a year, a £460 increase compared to now
• individuals who reached the state pension age before April 2016 can expect their pension to rise by £353.60 a year, bringing the total to £176.30 a week, or £9,167 a year 

In 2023, the full state pension increased by £900.

How do you qualify for a state pension? 

To qualify for the full state pension, those reaching the state pension age after 6 April 2016 must have at least ten years of national insurance contributions or credits. Tor the full state pension amount, a minimum of 35 years of contributions is required.

For individuals who reached the state pension age before 6 April 2016, at least 30 years of national insurance contributions or credits were needed to qualify for the full amount.

The news of the forecasted state pension rise comes as the government faces criticism for its decision to cut the winter fuel payment for all pensioners except those receiving pension credit or other means-tested benefits.

A vote in the House of Commons today – 10 September – saw a Conservative move to block the cut defeated by 348 to 228 votes, a majority of 120. The vote came despite strong opposition from charities, some Labour MPs, and other critics, who argue that the cut will force less well-off pensioners to choose between heating or eating this winter. When the vote was announced, shouts of “shame” could be heard in the House of Commons chamber.

The cut to the winter fuel allowance was first announced in July by chancellor Rachel Reeves, as part of a series of measures to address a “£22bn black hole” in the public finances.