State pension set to increase next year

UK wages grew at a record annual pace of 7.8 per cent between April and June, the highest annual growth rate since comparable records began in 2001.

The new figures, published by the Office for National Statistics (ONS) today, have fuelled speculation the state pension could rise by the average earnings metric of the triple lock rather than inflation.

UK inflation has eased but remains relatively high at 7.9 per cent in the year to June.

Meanwhile, average earnings growth has been on an upward trend, boosted as public sector pay deals, including one-off payments, are reflected in the final figures.

A seven per cent rise would push the full new state pension up to more than £11,400 a year.

An 8.2 per cent increase would see it rise to around £11,470.

A Department for Work and Pensions spokesperson said: “As is the usual process, the Secretary of State will conduct his statutory annual review of benefits and state pensions in the autumn, using the most recent prices and earnings indices available.”