State pensions set for a £500 triple lock rise

STATE pensioners could be on course for another solid pay rise next year with millions potentially getting an increase of more than £500, thanks to the triple lock.

- By Harvey Jones

The triple lock boosts the state pension each April by the highest of inflation, earnings or 2.5%, and early indicators point to a sizeable uplift in 2026.

Based on current trends, the full new pension could climb by between 4% and 4.5%, boosting today’s maximum annual payout of £11,973 by up to £539.

However, that would be just a whisker below the £12,570 personal allowance, and experts warn retirees with a modest income on top could be dragged into paying income tax due to the threshold freeze.

Sarah Coles, head of personal finance at Hargreaves Lansdown, said earnings rose 4.6% year-on-year between April and June.