State pension set to rise 3.9% in April

The government announced that the state pension will be increased by the highest of three measures – average wage growth, consumer‑price inflation or a minimum of 2.5 % – a formula known as the “triple lock”. The policy, which has been applied annually since 2010, is intended to protect pensioners’ purchasing power by ensuring that the uplift matches the strongest indicator of rising living standards.

Under the triple‑lock mechanism, the Department for Work and Pensions will compare the latest figures for earnings growth and the Consumer Price Index and apply the greatest of the three percentages to the basic state pension. If wage growth or inflation falls below 2.5 %, the pension will still rise by that minimum rate. The approach is expected to raise the weekly pension by the determined percentage from April, increasing the cost of the scheme for the Treasury while providing a predictable, inflation‑linked benefit for retirees.