Wage growth to decide state pension rise under triple lock

Millions of pensioners are set to receive a significant uplift to their state pension from April next year after official data showed wages growth likely to trump inflation and the statutory minimum increase. The Office for National Statistics said total pay including bonuses rose by 4.7 percent in the three months to July, a figure that under the government's "triple lock" policy is likely to determine next April's uprating for the state pension.

Under the triple lock, introduced in 2011, the state pension increases each year by whichever is highest of inflation, average earnings growth or 2.5 percent. With inflation currently at about 3.8 percent and therefore expected to remain below the earnings figure, analysts say the 4.7 percent pay rise will almost certainly be used. That would raise the full new state pension, paid to people who reached pension age after April 2016, from 230.25 to 241.05 a week, taking annual payments from 11,973 to 12,534.60, an increase of about 561.60 a year. Recipients of the older basic state pension would see an uplift from roughly 176.45 to 184.75 a week, taking annual payments from about 9,175.40 to 9,607.

Not all claimants will receive the full...