Older state pensioners across the UK are set to receive a weekly payment increase from the Department for Work and Pensions (DWP) in April next year.

The boost comes thanks to the triple lock which is used to determine how much State Pension rates increase at the start of each new tax year. The new April rates are set based on whichever is highest out of three factors – known as the ‘triple lock’. These are the consumer price index (CPI) measure of inflation (measured for September in the previous year), average wage growth between May and July of the previous year, or 2.5%.

Under the triple lock guarantee, pensioners are currently on course for a 4.8% boost to their State Pension in 2026, with the rates expected to rise in line with average wage growth – as this is the highest figure out of the three factors.

Currently, the full basic State Pension is worth £176.45 per week, but with an expected 4.8% increase in April, this is on course to rise to 184.90 per week in 2026. This would give older pensioners receiving the full basic State Pension a weekly payment increase of £8.45 from April 2026.

Over a full year this would amount to a total of £9,614.80 in pension payments (up from (£9.175.40), giving older pensioners on the full rate an extra £439.40 annually.

As for pensioners getting the full new State Pension, payments are expected to rise from £230.25 per week to £241.30 in 2026, giving pensioners a weekly payment increase of £11.05 from April.

Over a full year this would amount to a total of £12,547.60 in pension payments (up from (£11,973), giving pensioners an extra £574.60 annually.

The boost to both the basic and new State Pension is on course to be higher than previously thought after a key figure used in the triple lock calculation was revised upwards.

Office for National Statistics (ONS) data released on October 14 showed an upwards revision to total wage growth including bonuses for the quarter to July, up to 4.8%, from 4.7% in a previous estimate.

Meanwhile, ONS figures showed that CPI inflation for September was 3.8%, remaining at the same level as both July and August.

As total wage growth, including bonuses, for the quarter to July was 4.8%, it makes this the highest of the three figures and the one that is expected to be used for April’s State Pension increase. But the increase could mean that more pensioners will soon start paying tax on their State Pension as the rates may take them over the personal allowance threshold.

Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, the online investment platform, said: “For pensioners, the latest inflation data suggests another inflation-beating boost to the annual state pension payment is coming their way next April.”

She added: “The personal allowance has remained at £12,570 since the 2020-21 tax year, so unless the Chancellor revises this in the Budget, more retirees may find themselves paying a tax bill. 

“Of course, some will already be paying tax on their retirement income, either because they deferred access to the state pension or because they also receive income from a private pension.”