Granite guidance

Above inflation increase for state pensions

 Following the release of the September inflation figures the increases in the State Pension from April 2020 can be calculated  

The state pension and new state pension are increased each April by the “Triple Lock” which is the higher of:  

  • Annual CPI in from the September before the increase;
  • 3-month average wage growth to July before the increase; or
  • 2.5%.  

Average wage growth was 3.9% and CPI was 1.7% so state pension and new state pension will increase by 3.9% from April 2020.  

This means the full new state pension will see an increase from £168.60 to £175.20 per week and the full old basic state pension will see a rise from £129.20 to £134.25 per week.  

This is the second year where the wage growth has outstripped both CPI and the flat rate 2.5%, giving pensioners above inflation increases on the state pension payments.  

These figures still need to be confirmed by Government before being put into legislation. The calculation of wage growth isn’t defined in legislation, although the above figures are usually used. It is therefore possible different figure could be used.


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