UK State Pension to Rise by More Than £400 a Year says Treasury

The UK Treasury expects the new full state pension to be boosted above inflation by more than £400 a year in cash terms.

The BBC is reporting that the internal working calculations it has seen reflects the near certainty that the state pension will be increased by average earnings figures released next week.

This is due to the triple lock, which means the state pension increases every April by whatever number is highest out of inflation, the average UK wage increase, or 2.5 per cent.

The news comes as the government faces a backlash over its decision to cut the winter fuel payment for most pensioners.

Given that millions of people will lose the payment, the overall increase in their income is likely to be £100 or £200.

The increase will take the full state pension for men who were born after 1951 and women born after 1953 to around £12,000 next year, after a £900 increase last year.