State pensioners to receive £489 annual rise from April 2027

Summarised from 2 outlets · Updated 26 Oct, 08:43 · Archive

The state pension is set to rise by £489 to £13,036 annually from April 2027, following a 3.9 per cent increase.

The state pension will rise by 3.9 per cent from April 2027, taking the full new state pension to £250.70 per week, up from £241.30 currently. This equates to an annual increase of £489, bringing the total to £13,036 per year.

The rise is determined by the triple lock, a guarantee that rates will increase by whichever is highest of three factors: the consumer price index measure of inflation, average wage growth, or 2.5 per cent. The Office for National Statistics announced that inflation was 3.5 per cent in September, but the 3.9 per cent wage growth figure already published is higher and therefore determines the increase.

The Mirror reports that Chancellor John Healey is expected to announce in the Budget that the personal allowance for low-income pensioners will be raised to £13,036, matching the new state pension amount. This would shield almost one million pensioners from paying income tax. The Times reports this move is expected to cost taxpayers £200 million a year by the end of the decade and will continue to rise in line with future state pension increases. However, pensioners with higher incomes from private pensions or other sources will still pay income tax.

How it is being reported

• State pension personal allowance 'set to rise to £13,036' in Budget announcementThe new state pension is set to rise by £489 to £13,036 a year from next April, with official confirmation of this to be announced in the BudgetThe Mirror · 26 Oct, 08:26
• Older state pensioners set for £3,047 less from DWP in 2027State Pension rates rise every year but amounts vary depending on what you qualify for.Daily Express · 25 Oct, 13:15

In this story: Department for Work and Pensions · John Healey · Office for National Statistics · United Kingdom

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem