State Pension Could See Significant Increase in Coming Years

The new state pension system, which was introduced in 2016, is set to undergo significant changes in the coming years.
Potential Rise in Pension
According to reports, the full state pension could increase by more than £400 per year. The Treasury's internal calculations suggest that April's triple lock could be the reason behind this boost. By 2025/26, the full state pension could reach around £12,000, following a £900 increase in 2023. Chancellor Rachel Reeves has reiterated the Government's support for the triple lock until the end of the current Parliament.
Implications for Pre-2016 Retirees
Retirees who are eligible for the secondary state pension could also see a significant increase of £300 per year. The new state pension system, launched in 2016, aims to provide a sustainable foundation for individuals to build their private savings. Any decisions regarding pension increases will be made by Secretary of State Liz Kendall before the upcoming budget in October.
Public Backlash and Controversy
The Government has faced criticism for its decision to remove the winter fuel allowance for most households. Winter Fuel Payments will now be targeted towards pensioners who receive specific income-related benefits like Pension Credit. Despite this, around 1.3 million households in England and Wales will still receive the payment this winter. Analysis from last week revealed that only half of new state pension recipients were receiving the full weekly amount, with 150,000 individuals receiving less than £100 per week. Royal London's data from spring 2023 indicated that out of 3,407,567 pension recipients, 1,737,342 were receiving the full weekly amount. The full state pension for the upcoming year is set to be £221.20 per week, up from £203.85 last year. The Treasury is yet to comment on these developments.