State Pension Likely to Rise by £9.40 a Week

The state pension is likely to rise by £9. 40 a week to £250. 70 next April, according to the latest jobs and pay data.

Under the triple lock pension guarantee, the increase is based on either average wage growth, inflation or 2. 5% - whichever is highest.

The average wage growth, including bonuses, between May and July slowed to 3. 9%, according to the Office for National Statistics.

Almost 13 million people receive the state pension in the UK and current projections suggest pensioners will pay income tax on it from 2027 for the first time.

The Labour government has previously pledged that pensioners who rely solely on the state pension would not be required to complete a tax return, nor be chased to pay.

The average wages figure published by the ONS is likely to be the defining factor in the rise in the state pension next April.

The flat-rate state pension - for those who reached state pension age after April 2016 – will likely be £250. 70 a week, or £13,036. 40 a year, up £488 on now.

The increase to next year's state pension will not be confirmed until September inflation is released next month.

If it is higher than 3. 9%, that figure will be used to calculate the increase.

Inflation is currently 2. 9% and is expected to rise in the coming months.

The state pension rises by the highest of wage growth, inflation or 2. 5%. According to the latest jobs and pay data, the increase is based on either average wage growth, inflation or 2.

Under the triple lock pension guarantee, the increase is used to calculate the rise in the state pension.