Earnings Revision to Impact State Pension
Average earnings growth has been revised up to 4.8%, resulting in an estimated increase in the full new State Pension to £12,590 next April.
This increase will exceed the Personal Allowance of £12,570 for the first time, potentially subjecting pensioners to income tax.
David Brooks of Broadstone warns that this could mean pensioners face tax on their income, highlighting the rising cost of the Triple Lock.
- Average earnings growth for May-July has been revised up from 4.7% to 4.8%.
- The full new State Pension is likely to increase to around £12,590 next April for 2026/27.
The Department for Work and Pensions (DWP) calculates the State Pension increase by applying the uprating to the weekly total, converting to a day rate, and then multiplying by 365.25.
Author's summary: Earnings growth revision to increase State Pension to £12,590.