PENSION TO TOP £12,000

Wage growth set to trigger income boost

- GRAHAM HISCOTT

THE state pension could rise to more than £12,000 a year from next April under the government's triple-lock pledge.

The mechanism ensures pensions increase either by 2.5% or in line with average earnings or inflation, whichever figure is higher.

With inflation now down to 2%, it is likely wage growth will again be the trigger for next April's increase.

Average pay grew 5.7% in the three months to May, Office for National Statistics data showed yesterday.

All eyes will now be on figures to be published in September, which normally influence the following year's state pension uplift.