UK State Pension Set for 3.9% Boost as Wages Outpace Inflation

The UK government has confirmed that the state pension will rise by 3.9% next year, according to new figures from the Office for National Statistics (ONS). This increase is in line with wage growth between May and July.

The triple lock guarantee ensures that the state pension increases annually by the highest figure of wage growth, inflation, or 2.5%. With earnings growth outpacing inflation, the 3.9% rise will lift the full new state pension from £241.30 to approximately £250.70 per week.

The Bank of England forecasts that Consumer Price Index (CPI) inflation will peak at around 3.2% later this autumn, which is below the three-month wage growth average. Official September CPI inflation figures will be published on October 21st, but unless there's an unexpected spike, the 3.9% increase is likely to stand.