State pension set to rise by 4.1% and benefits by 1.7% from April 2025

MSE_Emily

The state pension is set to rise by up to £475 a year (4.1%) from 6 April 2025 under what's known as the 'triple lock' guarantee. Meanwhile certain benefits, including Universal Credit, are expected to increase by 1.7%...

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State pension set to rise by 4.1% and benefits by 1.7% from April 2025

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FlorayG

Well that's nice for me as I'm a pensioner; but UC is way too low in the first place and 1.7% surely is not in keeping with cost of living rise?

hugheskevi

It is interesting to note that between 2010-25 State Pension has tracked RPI almost exactly.



If no changes to uprating had been made in 2011, and simple statutory increases were applied each year (RPI uprating with a floor of zero) the rate of State Pension would be higher today than it is, despite the Triple Lock.

Over the longer 2001-25 period State Pension has comfortably outpaced all of RPI, CPI, and earnings. 

What is very striking is the terrible performance of average earnings growth between 2010-25, where it barely kept pace with CPI.

la531983

FlorayG said:

Well that's nice for me as I'm a pensioner; but UC is way too low in the first place and 1.7% surely is not in keeping with cost of living rise?

September inflation figures are used to dictate benefit increases.That was announced just over an hour ago as 1.7%

https://www.bbc.co.uk/news/articles/czxde3779lxo

westv

Is 1.7% the rate that will be used for public sector pension increases?

la531983

westv said:

Is 1.7% the rate that will be used for public sector pension increases?

No, the March figures are used for those.

Dazed_and_C0nfused

la531983 said:

westv said:

Is 1.7% the rate that will be used for public sector pension increases?

No, the March figures are used for those.

Is that new 🤔

la531983

Dazed_and_C0nfused said:

la531983 said:

westv said:

Is 1.7% the rate that will be used for public sector pension increases?

No, the March figures are used for those.

Is that new 🤔

Well I went and checked my own statement and 10.1% was added onto my balance last year, and that was the inflation figure for March 2023. So I only speak as I find.

pterri

My DB is linked to RPI (caped at 5%) when in payment or deferred, so 2.7%. No idea what they will do when RPI is no longer published in I think 2030. CPIH perhaps, which I think is supposed to replace it. 

pinnks

Civil Service pensions rise each year by the same amount as additional pension, so by the CPI for September which as posted above is 1.7%.  I don't know whether that applies to all public sector pensions but I would guess it would apply to most.

Other DB pensions will have their own rules.

Exodi

la531983 said:

Dazed_and_C0nfused said:

la531983 said:

westv said:

Is 1.7% the rate that will be used for public sector pension increases?

No, the March figures are used for those.

Is that new 🤔

Well I went and checked my own statement and 10.1% was added onto my balance last year, and that was the inflation figure for March 2023. So I only speak as I find.

That was what my wife received in 22_23 and this year it is 6.7% for TY 23_24 (alpha scheme - they generated the statements about 4 weeks ago).