Jamie Jenkins comments on wage growth announcement

Commenting on today’s wage growth announcement and its effect on the State Pension, Jamie Jenkins, Director of Policy at Royal London said: 

"With inflation having reduced, the 'triple lock' will return to wage growth as the highest measure, and this should drive a 4% increase to the State Pension from April 2025.

"The government has committed to retaining the triple lock for now, ensuring that the State Pension rises each year by the highest of average wages, inflation or 2.5%.

"Inflation drove an 8.5% increase in April 2024 and, although the 2025 increase will be lower, it still serves to ensure those in receipt of the State Pension get the best of three measures, keeping pace with wages this year, and exceeding inflation at its current level.

"However, recent data obtained by Royal London found that only half of the 3.5 million recipients of the new State Pension were paid the full weekly amount of £203.85 last year, due to gaps in their National Insurance record. Until April 2025, those who are entitled to the new State Pension may be able to fill in the gaps going back to 2006."