UK Pensioners To Benefit From £100s With State Pension Rise In April

Pensioners will notice a rise of £460 per year from April 2025, when the UK government raises the state pension by 4% according to financial experts. This is in line with average wage rises across the UK according to the Office for National Statistics (ONS)’s latest figures. 

According to the ONS, total pay in the UK rose by 4% between May and July. Under the triple lock, the UK government is bound, by law, to raise the state pension amount each year by 2.5%, inflation, or average earnings – whichever is highest. With the UK’s average earnings raising by 4%, this means most pensioners will notice an average rise of £460 per year come April 2025.

Of course, annual figures may mean very little to pensioners. In real terms, this will present as a rise from the typical £221.20 per week to £230.05 per week. Whilst not an astronomical rise, it comes at a welcome time for pensioners in the UK, for whom many have had their winter fuel payment removed under the new government’s plans to cut back on spending.

Is The Pension Rise For Everyone?

Whilst the pension rise will affect all state pensions in the UK, not everybody is on the same state pension. The £460 rise will only be given to individuals on a full state pension who reached state pension age after April 2016.

For those who reached state pension age before April 2016, the full, old basic state pension will rise by £353.60 annually, which will equate to state pension payments of £176.30 per week.

Is The Pension Rise Guaranteed?

The ONS figures are encouraging and are indicative of what is likely to come. However, it is ultimately the Work and Pensions Secretary, Liz Kendall’s job to announce the final figure around the time of the budget next year.

Whilst Liz Kendall is bound by the triple lock that’s in place, the initial figures released by the ONS could be revised in the meantime. The likelihood of the figures being completely wrong is incredibly low, so it’s safe to say that pensioners will see a rise of around 4% come April 2025.

At Real Business, we know that our responsibility to employees doesn’t end after they retire, which is why we’re dedicated to covering all the latest SME news, ranging from policy announcements that directly affect workers to pension rises and pension reforms. 

If you want to keep up to date with the latest news, sign up to our FREE newsletter where we’ll cover any final announcements with regards to state pension rises as and when they’re made.

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