State pension set to rise by £460 next year

Published On Sep 10, 2024, 2:13 AM

The UK government is expected to raise the state pension by £460 a year starting in April, based on current earnings data that reflects a 4% annual wage increase. This increase is part of the 'triple lock' system, which guarantees the highest figure among growth rates of 2.5%, inflation, or average earnings. Despite this increase, many pensioners will be worse off due to the announced means-testing for winter fuel payments, eliminating eligibility for over nine million pensioners. Additionally, slower earnings growth may lead to further interest rate cuts by the Bank of England later this year, as the unemployment rate has also decreased to 4.1%.