Pensioners could see the new state pension rise from the following economic year, if wage growth remains at a similar level.
Annual growth in total earnings in March to May (including bonuses) was 5.7 per cent, down from six per cent in the previous three months.
It’s an important figure for 12.7 million state pensioners across Britain to take note of as it could be the figure that decides how much the state pension increases.
Given that inflation is currently at two per cent, it is likely that wage data will be used for the uplift.
This boost would surpass the current inflation rate, suggesting pensioners could see an improvement in living standards, with a state pension rise of more than £12,100 per year from April 2025.
Under the triple lock, state pensions rise by either the rate of inflation, average earnings or 2.5 per cent – whichever is higher.
If a 5.7 per cent increase was implemented the full new pension would be raised to £935.20 a month or £12,157.60 over the 2025/26 financial year.
Similarly, the full basic state pension would come to £713.60 every four-week period or £9,276.80 annually.
The state pension could rise from April 2025GETTYIf the triple lock stays in place, the retirement benefit is likely to surpass the personal savings allowance of £12,570, which is the amount people can earn without paying tax.
With that in mind, do you trust Labour when it comes to your pension? Have your say.