State pension could rise 10% as triple lock is restored - what it means for you

Pensioners are set for a boost to their income next year after the government confirmed the link between inflation and the state pension will be reinstated.

Senior woman using a laptop
(Image credit: getty images)

The state pension could rocket 10% next April after the government confirmed that the triple lock would be reinstated.

The triple lock is a formula for guaranteeing the state pension will hold its value over time. Under it, the state pension increases either by earnings, inflation or 2.5% - whichever is higher.

However, chancellor Rishi Sunak blocked an expected increase of 8% in April this year, after the DWP said earnings figures had been ‘distorted’ by the pandemic. Pensioners received an increase of just 3.1% instead - a devastating cut in real terms as inflation hit a 40-year high of 9% in April.

Now the government has confirmed the triple lock is to be restored after a one-year suspension, with the uplift due to come into play in November.  

This means pensioners will be looking to the September inflation figure - traditionally used for the triple lock. By this time, inflation could be in double digits. The Bank of England expects it to peak at 10.25% during the final quarter of this year.

This would give pensioners a much-needed uplift. For those who receive the new state pension - currently £185.15 a week or £9,627.80 a year - a 10% rise would mean weekly payments of £203, providing an annual income of around £10,600.

For those who retired before 6 April 2016 and receive the old basic state pension, the same 10% rise would mean weekly payments would rise from £141.85 to £156.03, meaning an increase in their annual income from £7,376.20 to £8,113.82.

Wondering how much state pension you will get and when? Take a look at our article on how to check your state pension for more. 

Katie is staff writer at The Money Edit. She was the former staff writer at The Times and The Sunday Times. Her experience includes writing about personal finance, culture, travel and interviews celebrities.  Her investigative work on financial abuse resulted in a number of mortgage prisoners being set free - and a nomination for the Best Personal Finance Story of the Year in the Headlinemoney awards 2021.