Triple lock rise has a nasty tax sting in the tail

We don't yet know exactly what Chancellor Rachel Reeves will announce when she stands up to deliver her Budget at 12.30pm, but one thing is already locked in.

- HARVEY JONES

On Monday, the Government confirmed that around 13 million state pensioners will get the full triple lock increase from next April, a rare piece of good news in a tough year.

The triple lock uprates the state pension each year by either inflation, earnings or 2.5%, whichever is highest.

Next April it will rise by 4.8%, following the recent jump in wage growth. This lifts the full new state pension from £11,973 to £12,547.60 a year, an increase of £574.60 for those on the maximum rate.

Older pensioners who retired before April 6, 2016, on the basic state pension get the same 4.8% increase, but it will be worth less.

Today, the basic state pension pays a maximum of £9,175.40 a year, which will increase by just under £440 to £9,614.80.