Tue, 08 Jul 2025

Tue, 08 Jul 2025 What is the triple lock and how much is the state pension worth?

The triple lock guarantees that the state pension is not overtaken by inflation or wage increases.
State Pension Cost Set to Rise Dramatically By 2030, the annual cost of maintaining the triple lock on state pensions is expected to reach £15.5 billion, more than three times the original estimate made in 2011. This means that over a decade, the total cost will be around £138 billion, roughly half the amount spent by the government on benefits. The Office for Budget Responsibility (OBR) attributes this sharp increase to steady rises in state pension costs over the past eight decades. The current system guarantees annual increases in line with inflation, wage growth or 2.5%, whichever is higher. The triple lock was introduced in 2010 by the Conservative-Liberal Democrat coalition government. In April 2025, the earnings link meant a 4.1% rise for state pensions, making them worth:
* £213.85 per week for individuals
* £337.55 per week for couples To qualify for a full state pension, you typically need to have paid NI contributions for at least 35 years. Some people may be eligible for voluntary payments to boost their contribution history. Pension credit also increased by 4.1% in April 2025, topping up weekly income to:
* £187.70 per week
* £276.45 per week for couples Winter Fuel Payment Changes In July 2024, the government announced changes to the winter fuel payment rules. This meant that from the next winter, only those on pension credit or other means-tested benefits would be eligible. However, after much criticism and speculation in June 2025, the government U-turned, announcing that around nine million pensioners in England and Wales with an annual income of £35,000 or less would receive a winter fuel payment.
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