UK State Pension Set for 4.7% Rise Under the Triple Lock – What It Means for Retirees, Workers, and Government Finances

The UK state pension is likely to rise by 4.7% in April 2026, delivering one of the largest real-terms boosts in years. While this may be welcome news for pensioners, it comes at a time when the jobs market is weakening, tax rises are on the table, and questions over the long-term sustainability of the “triple lock” are louder than ever.

In this article, we explain what the increase means in pounds and pence, how the triple lock works, why it is controversial, and the possible implications for both pensioners and working taxpayers.

What Is the Triple Lock?

The state pension triple lock is a policy introduced in 2010 by George Osborne. It guarantees that the basic and new state pension will rise every April by whichever of the following is highest:

1. 2.5%
    
2. The rate of inflation in September
    
3. Average annual wage growth (measured May–July)
    

This means pensioners are always protected from falling behind, whether prices are rising quickly or workers’ pay packets are growing.

The system was originally designed to protect pensioners from poverty and ensure dignity in retirement. However, because the measure locks pension growth to whichever indicator is highest, it can deliver inflation-busting increases in years when wages or prices are unusually high.

The 2026 Pension Increase

The Office for National Statistics (ONS) has now confirmed that wage growth between May and July 2025 was 4.7%. With September inflation currently running at 3.8%, wage growth is higher and therefore sets the benchmark.

That means from April 2026:

• The new state pension will rise from £230.25 to £241.05 per week (an extra £564 per year)
   
• The basic state pension will rise from £176.45 to £184.75 per week (an extra £432 per year)
   

This uplift comes on top of the 8.5% increase applied in April 2024 and the 6.7% increase in April 2025.

Why Now – and Why Controversial?

While pensioners will welcome the boost, the timing is difficult for the government. Chancellor Rachel Reeves has already warned that the public finances are under pressure. The OBR (Office for Budget Responsibility) projects that state pension costs will rise from 5% of GDP today to 8% by the 2070s — with half of this increase driven by the triple lock.

The Criticism

• Expensive and unpredictable: Economists at the Institute for Fiscal Studies argue the triple lock makes government spending harder to forecast, especially in volatile times.
   
• Intergenerational unfairness: Younger workers are paying higher National Insurance and taxes, yet their own pensions are less secure and their retirement age is rising.
   
• Crowding out other spending: Protecting pensions may mean less money for health, housing, and social care.

The Legal Side – Can the Triple Lock Be Scrapped?

Legally, there is no obligation for the UK to retain the triple lock. It is a government policy, not a statutory guarantee. That means a government can amend or abolish it through legislation or by changing the terms of the annual uprating order.

However:

• The Pensions Act 2014 requires that the state pension is uprated at least in line with earnings.
   
• To remove the triple lock entirely, Parliament would need to amend or repeal relevant sections of pensions legislation.
   
• Politically, dropping the triple lock is risky. Older voters are one of the largest and most reliable voting blocs.
   

Successive governments — Conservative, Coalition, and now Labour — have all pledged to protect it, even while cutting spending elsewhere.

Pressure on Reeves and the Autumn Budget

Rachel Reeves’s first autumn budget is due in November 2025. She faces competing demands:

• Business groups have criticised her £25bn rise in employer National Insurance and the 6.7% rise in the national living wage, warning these measures are driving job losses.
   
• HMRC payroll data shows 8,000 fewer workers on company payrolls, while unemployment is now at 4.7%, the highest in four years.
   
• Pay growth has slowed to 4.8%, while redundancies are creeping upwards.
   

Against this backdrop, Reeves must find room in the budget to cover billions in extra pension spending while avoiding further damage to business confidence.

Impact on Pensioners

For pensioners, the rise is significant:

• Cost of living relief: Even at 3.8% inflation, a 4.7% increase provides a small real-terms gain.
   
• Security: For those without private pensions or large savings, the state pension is often their main source of income.
   
• Planning: Knowing the rise in advance allows retirees to budget for bills, food, and energy costs.
   

However, the pension increase alone may not solve deeper issues:

• Rising social care costs mean many pensioners’ extra income is absorbed by care fees.
   
• Frozen tax thresholds mean pensioners are dragged into paying income tax on state pensions, especially those with private pensions.

Impact on Younger Workers

While pensioners gain, the burden falls on current taxpayers:

• National Insurance contributions are the main source of funding. With fewer workers and lower wage growth, the contribution base is shrinking.
   
• Younger workers face higher housing costs, childcare costs, and tax burdens — while also being told they may have to work until their late 60s or 70s to claim the same pension.
   
• This fuels intergenerational tension, as some feel they are paying for a benefit they may never fully enjoy.

The Future of the Triple Lock

There are three likely options on the horizon:

1. Retain the triple lock: Keeps pensioners protected, but adds huge fiscal pressure.
    
2. Move to a “double lock” (earnings or inflation, whichever is higher): Cheaper but still provides protection.
    
3. Tie to earnings only: Simplifies the system but risks pensioners losing out in high inflation years.
    

Legal reform would be required for options 2 or 3, but both are actively discussed by think tanks and civil servants.

What Pensioners and Families Should Do

At Parachute Law, we regularly advise clients on estate planning, wills, and powers of attorney. Pension changes like these can affect your long-term financial plans. Some key steps to consider:

• Check your National Insurance record: You may be able to top up gaps to increase your future entitlement.
   
• Review your estate plan: Higher state pensions may mean more taxable income in retirement. Consider inheritance tax planning and gifts.
   
• Set up a Lasting Power of Attorney (LPA): If you rely on state pension income, ensure someone you trust can manage your finances if you lose capacity.
   
• Consider private pensions: The state pension is unlikely to meet all living costs. Private provision can give flexibility and security.

Conclusion

The 4.7% rise in the UK state pension is set to provide a much-needed income boost for millions of retirees from April 2026. Yet it highlights the growing tension between protecting pensioners and managing public finances in a slowing economy.

For Rachel Reeves, the challenge is acute: how to fund this generosity while keeping businesses afloat and younger workers on side. For families, it is a reminder to keep pension and estate planning under review.

At Parachute Law, we help clients prepare for these shifts with tailored legal guidance — from drafting wills to setting up powers of attorney and planning for inheritance tax.

If you want to discuss how the triple lock rise affects your estate or retirement planning, get in touch with our team today.

Call Parachute Law today on 0207 183 4547

Contact us online for tailored support and advice

Related Reading:

Can I Sue My Employer For...?

Protect Your Share: Lock In Your Property Rights Today

UK Government to Slash 10% of Civil Service Jobs in Major Spending Review