State pension could rise by 8.5% from April 2024 with some benefits expected to go up by 6.7% – here's what's happening
The state pension could rise by 8.5% from April 2024 under the 'triple lock' guarantee, meaning millions of people could receive a weekly increase of up to £17.35. Certain benefits, including Universal Credit, are also expected to rise from next April by 6.7%.
Increases to the state pension and many other benefits are typically linked to September's Consumer Prices Index (CPI) measure of inflation, which the Office for National Statistics has today (Wednesday 18 October) confirmed has remained unchanged from August at 6.7%.
However, the Government will also need to officially confirm any rises. The Treasury has today said the Chancellor will conduct his statutory annual review of benefits and state pensions using the most recent data available. We've asked the Government when this will take place and whether the same calculations as usual will be used, but it has declined to give us any further information. Below we explain what we know for now.
For further info, see our State pension guide for details on how it works, what you get and how to boost it. You can also do a 10-minute benefits check to find out if you're missing any state support.
State pension payments could rise by 8.5% from next April
Since 2010, increases to the state pension have typically been based on the so-called 'triple lock' commitment, which guarantees that payments rise in line with the largest of September's CPI inflation measure, average wage growth between May and July (including bonuses), or 2.5%. Any increase usually comes into effect the following April.
As September's CPI was 6.7%, this means state pensions are likely to go up by average earnings growth instead, which was a higher 8.5% – though there have been unconfirmed reports that the Government may instead use earnings growth excluding bonuses, which would be 7.8%.
If the Government continues with the triple lock in its current format it means more than 12 million pensioners could see their state pension increase by up to £17.35 a week from next April. See the tables below for a more detailed breakdown.
|2024/25 (new, if raised by 8.5%)||£221.20 (+£17.35)||£11,541.90 (+£905.30)|
|2024/25 (new, if raised by 7.8%)||£219.75 (+£15.90)||£11,466.24 (+£829.64)|
|2024/25 (new, if raised by 8.5%)||£169.50 (+£13.30)||£8,844.27 (+£693.98)|
|2024/25 (new, if raised by 7.8%)||£168.40 (+£12.20)||£8,786.87 (+£636.58)|
In April this year, the state pension rose by 10.1% as the triple lock returned following its suspension in the 2022/23 tax year. In 2022/23, the increase was instead based on the higher of 2.5% or CPI inflation – known as the 'double lock'. Average earnings were removed from the equation after a spike caused by workers coming off furlough and pandemic-related restrictions easing.
Some benefit payments could rise by 6.7% from April 2024
Usually inflation-linked benefits and Tax Credits rise in April directly in line with the previous September's CPI. This September's CPI figure, which the Office for National Statistics has confirmed to be 6.7%, could also mean that these benefits receive a boost.
The benefits that usually rise in line with inflation are as follows:
- Attendance allowance
- Employment and support allowance
- Housing Benefit
- Income Support
- Industrial Injuries Disablement Benefit
- Jobseeker's allowance
- Maternity allowance
- Pension Credit
- Personal independence payment
- Statutory maternity / paternity / adoption / shared parental pay
- Statutory sick pay
- Tax Credits
- Universal Credit
The amount that can be taken off benefit payments in the form of deductions or sanctions could also increase from April 2024. The amount that can be deducted currently varies by benefit.
The amount you can reclaim for childcare costs if you get Universal Credit, and the overall benefits cap (the maximum amount you can get in benefits), don't usually rise with inflation. These go through a separate review process, and have stayed at the same level for the past few years.