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State pension likely to rise by more than £500 from April
Pensioners could see a 4.7% rise in the 2026-27 tax year
The state pension could rise by as much as £562 a year from April 2026 if wage growth continues to remain higher than inflation, new figures suggest.
Each year, the state pension goes up by the 'triple lock'. This means state pension payments are guaranteed to increase by either September's CPI inflation figure, average earnings growth between May and July, or 2.5% – whichever is higher.
Today, the Office for National Statistics (ONS) announced that average earnings growth, including bonuses, was 4.7% between May and July, up from 4.6% in the three months to June.
Here, Which? reveals why the state pension is likely to increase by wage growth in the 2026-27 tax year, how much you can expect to get and how to check your state pension forecast.
Which part of the triple lock will increase the state pension?
As September's inflation figure will not be published until October, we don't yet have the final piece of the puzzle on how the state pension will be raised next year.
However, it is looking unlikely that September's inflation will be higher than 4.7%. Inflation was 3.8% in July.
It's also worth keeping in mind that the wage growth figures are subject to revision when next month’s jobs market data is released.
The Chancellor will then confirm the exact rise to state pension payments in the Autumn Budget, which this year is scheduled for 26 November.
The Conservative-Liberal Democrat coalition designed the triple lock to ensure the value of the state pension was not overtaken by the increase in the cost of living or the incomes of working people. Labour has confirmed that it will uphold the policy while in government.
- Find out more: state pension age calculator
How much could the state pension pay in April?
There are two types of state pension in the UK, which pay different amounts: the basic state pension and the new state pension.
Men born on or after 6 April 1951 or women born on or after 6 April 1953, can claim the new state pension. Those born before these dates can claim the older basic state pension.
Currently, the full new state pension pays £230.25 a week or £11,973 a year. The basic state pension offers £176.45 a week or £9,175.40 a year.
If the state pension were to rise by the wage growth figure of 4.7% in April next year, this is how you can expect your payments to change:
New state pension
| Year | Weekly payment | Annual amount |
|---|---|---|
| 2025-26 (current) | £230.25 | £11,973 |
| 2026-27 ( if increased by 4.7%) | £241.05 | £12,535 |
| Increase of | £10.80 | £562 |
Basic state pension
| Year | Weekly payment | Annual amount |
|---|---|---|
| 2025-26 (current) | £176.45 | £9,175.40 |
| 2026-27 (if increased by 4.7%) | £184.75 | £9607 |
| Increase of | £8.30 | £431.60 |
The weekly amount for state pension payments is usually rounded to the nearest 5p when the rise is applied.
Will you have to pay tax on your state pension?
The state pension isn't tax-free, but the money you receive is paid 'gross' – without any tax being deducted.
If your total income from all sources – including the state pension – is greater than your personal allowance, tax is due on your state pension. This will normally be deducted from any private pension or earnings you might have, which are paid through the PAYE system.
If you have no PAYE income, you have to complete a self-assessment tax return and pay any tax due directly to HMRC.
Sir Steve Webb, partner at pension consultants LCP and former pensions minister, said the standard rate of the new state pension was 'creeping ever closer to the frozen personal tax allowance'.
The standard personal allowance is the amount of income you can earn each year without having to pay tax. It currently stands at £12,570 and is set to remain at this level until 2028.
Sir Webb said that someone with no other income aside from the new state pension is set to be a taxpayer come April 2027.
He added: 'It is already the case that nearly three quarters of all pensioners pay income tax, and the ongoing freeze in tax thresholds coupled with steady rises in the pension will drag more and more into the tax net.'
- Find out more: income tax explained
How to check your state pension forecast
If you're eligible to receive the state pension, it's paid to you when you reach state pension age. This is currently 66 for women and men, but two more increases are already set out in legislation.
Between 2026 and 2028, it will gradually rise to 67 for those born on or after April 1960, with another gradual rise to 68 between 2044 and 2046 for those born in or after 1977.
How much state pension you'll get depends on how many 'qualifying years' of National Insurance Contributions (NICs) you have. For the new state pension, most people need 35 qualifying years on their National Insurance record to receive the full amount, and typically 10 years to get anything at all.
To get the full basic state pension, you again need a specific number of qualifying years of National Insurance contributions. For men, this is:
- 30 years if you were born between 1945 and 1951
- 44 years if you were born before 1945
For women, this is:
- 30 years if you were born between 1950 and 1953
- 39 years if you were born before 1950
You can receive more than the full amount of the new state pension if you have accumulated an additional state pension from the old system. This was a top-up to the previous basic state pension and was also known as the state second pension (S2P) or SERPS.
While the new rules have scrapped this top-up, the government has allowed many workers in their 40s, 50s, and early 60s to keep what they've already built up.
For anyone who hasn't yet reached the state pension age, you can use an online government tool to check your state pension forecast. This will tell you how much you can get, when you can start receiving payments, and whether you're able to increase them.
- Find out more: your state pension forecast explained
