New state pensioners are in line for a boost to their state pension worth approximately £490 a year with a £250 per week handout. That’s because the Triple Lock boost has now been confirmed in the Budget and is set to increase state pensions by a handy 3.9% from April 6, 2027.
The new state pension was introduced in 2016 and applies to all men born after April 5, 1951 and women born after April 5, 1953. Everyone who gets the full new State Pension could be handed another £490 a year thanks to the Triple Lock, according to the latest figures.
The DWP has to increase the amount paid to those who receive the state pension each year due to the ‘Triple Lock’ system, which enshrines in law that everyone who is eligible for the handout from the Department of Work and Pensions must see an increase each year, either level with inflation, wage growth or by 2.5%, whichever is highest.
New Prime Minister Andy Burnham has already committed to the triple lock for the next three years, despite plans to axe it from 2030 and reduce it to a lesser ‘double lock’ system without wage growth.
Now, Secretary of State for Pensions Pat McFadden has confirmed the increase, Speaking in the House of Commons, he said: “I am pleased to announce that the basic and full rate of the new state pensions will be increased by 3.9%, in line with the increase in average weekly earnings in the year to May-July 2026.
“This delivers on our triple lock commitment throughout this Parliament to increase these rates in line with the highest of growth in prices, growth in earnings or 2.5%. From April, the full annual rate of the new state pension will increase by around £490. The full annual rate of the basic state pension will increase by around £375.”
The increase will mean that the full, new state pension will go up to approximately £250.70, increasing from the current rate of £241.30.
But for some, the boost may still not be enough to guarantee an ‘adequate retirement’.
Head of financial planning for Hargreaves Lansdown’s Helen Morrissey said: “If you have a gap between what you have and what you need, then taking small actions, like boosting contributions every time you get a pay increase or a promotion could have a big impact over time.
“Your employer might also be willing to increase their contribution if you increase yours – known as the employer match – and this can also make a big difference. This steady drip feed of contributions invested over the long term can transform your retirement.
“If you’re worried that you’ve neglected your pension, then it’s important to say that it’s never too late to make a difference to your retirement.
“Take stock of what you have, and if you have any extra money to contribute, it can still make a huge difference. You can usually access money in a pension from age 55 (rising to 57 in 2028).”
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