MILLIONS of people are set for a bumper rise of £869 to their state pension payments next year.
It comes after official figures published today revealed wages have risen at their fastest rate on record.
Millions of people are set for a bumper rise of £869 to their state pension payments next yearCredit: PA
The triple lock sees the state pension rise in line with whatever is highest out of: September’s wages figure, 2.5% or September’s inflation figures.
For the months of April to June, compared with a year earlier, total pay including bonuses was up 8.2%, the Office for National Statistics revealed.
This has prompted several experts to expect wages will be the deciding factor on how much state pension payments will be going up by in April 2024.
It means, if the rate continues to increase the way it is, pensioners on the new state pension could be looking at an extra £869 a year.
This would mean an increase from £203.85 a week to £220.55 per week.
It’s important to note though that this is for those entitled to a “full” state pension, how much individuals get is based on the number of qualifying years you’ve accrued.
Inflation currently sits at 7.9%, but it is forecast to fall to 7% in September – although we won’t know if that’s the case until October when the figure is announced for the previous month.
Fresh inflation figures will be announced tomorrow for July, which will give further indication of how much it could fall or rise by come September.
Most read in Money
It means that if things continue the way they are going, wages will remain the higher figure when the increase is revealed.
Experts such as Steve Webb, former pensions minister and partner at LCP, said that earnings growth has proved robust in recent months, while inflation is starting to dip.
Steve said: “It seems very likely that the pension rise implied by the triple lock policy will be much higher than expected at the time of the March 2023 Budget.
“Although inflation is coming down, the rate of average earnings growth has been heading upwards and is likel …