21 October 2026
If you are covering the latest inflation data and the confirmation of the full new State Pension increase for the 2027/28 tax year, please see the following comment from Jon Greer, head of retirement policy at Quilter:
"The final piece of the puzzle has now fallen into place, with today's 3.5% inflation figure confirming that the new State Pension will rise by 3.9% next April under the earnings element of the triple lock – or 0.4% higher than had it been tied to inflation. This will take the full new State Pension to £250.70 a week, or £13,036.40 a year from April 2027, putting an extra £488.80 into pensioners' pockets annually.
"This will be welcome news for millions of retirees, particularly after another year in which many household budgets have remained under pressure. However, this increase carries significance beyond next year's uplift alone. While the triple lock may now have an expiry date, it has not finished boosting pensioners' incomes just yet.
"Andy Burnham has confirmed that the triple lock will be replaced from 2030 with a guarantee based on the higher of inflation or 2.5%, alongside a longer-term earnings link that has yet to be set out in detail. While that new framework is likely to be less generous than the current system, if earnings continue to outpace inflation over the next few years, pensioners could still benefit from further meaningful increases before the reforms take effect. In that sense, the impact of the earnings link will continue to be felt long after the current version of the triple lock has gone.
"The real question now is what comes next. The State Pension remains a crucial source of income for millions of retirees. Our latest Retirement Lifestyle Report shows it accounts for almost a quarter of retirement income on average, while among retirees aged 65 to 79 with incomes of £25,000 or less it provides 57% of their retirement income. For over-80s on below-average incomes, it accounts for 54% of what they live on. Equally significant is the fact that this latest increase means the full new State Pension will exceed the personal allowance for the first time. The government has committed to ensuring pensioners whose only income is the State Pension do not pay income tax, but we are still waiting for detail on exactly how that will work in practice which we understand will be confirmed in the Budget.
“The commitment to maintain the State Pension's value relative to earnings over time is welcome, but pensioners need certainty not only over future uprating policy, but also over how their retirement income will be taxed in the years ahead.”
