Retirees in line for bumper 3.9% state pension increase

State pensions are set to rise by 3.9% from next April – the biggest increase since 2012. 

This means that those receiving the old state pension (i.e. those who reached state pension age before 6th April 2016) will see their basic payment increase by £5.05 per week to £134.25, while those receiving the new state pension (those who reached state pension age since 6th April 2016) will see an increase of £6.60 per week to £175.20. 

State pensions are protected by the "triple lock", meaning the amount paid is increased every year in line with inflation, average earnings or 2.5% – whichever is the highest. 

While the Consumer Price Index (CPI) for September was 1.7%, average earnings increased by 3.9% in the three months leading up to July, so this will be the figure used. 

The increase will come into force from April 2020, assuming it is approved by Parliament as is expected.

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