Millions of UK state pensioners are set to receive a £1,900 boost over the next few years, thanks to the Government’s continued commitment to the Triple Lock system. This announcement comes as many older citizens voice concerns over rising taxes and the impact of frozen income tax bands.
The Triple Lock, which guarantees the State Pension increases each year by whichever is highest – inflation, wage growth or 2.5% – will continue until at least 2029.
What Is the Triple Lock?
The Triple Lock was introduced to protect pensioners’ incomes and ensure their State Pension keeps up with the cost of living. Every April, the pension is increased based on:
- CPI inflation (Consumer Prices Index)
- Average earnings growth
- Or a minimum of 2.5%
Whichever of these three is the highest determines the yearly increase.
In April 2025, the State Pension increased by 4.1%, giving those on the full New State Pension an extra £470 annually.
Pension Increases Projected Until 2029
According to James Murray, Exchequer Secretary to the Treasury, pensioners can expect the full New State Pension to increase by around £1,900 more by 2029, based on current forecasts from the Office for Budget Responsibility (OBR).
That means steady increases are expected each year under the Triple Lock, adding long-term value to pensioners’ incomes.
Tax Concerns for Pensioners
While the Triple Lock promises rising pension amounts, many pensioners are concerned about getting dragged into paying income tax due to frozen tax thresholds.
What Is the Issue?
The personal allowance (the amount you can earn tax-free) remains at £12,570. However, the State Pension increases each year, and some pensioners now earn more than the personal allowance when combined with small private pensions or savings income.
This leads to more pensioners paying tax, even if their total income is just slightly above the threshold.
A petition asking the Government to increase the personal allowance to £20,000 gathered over 250,000 signatures, but the Government has ruled out making that change.
Who Will Be Taxed?
If your only income is the State Pension, you will not pay tax – because the full New State Pension is still below the £12,570 threshold.
However, if you:
- Receive a small private pension
- Have savings interest
- Get rental income
…you may cross the tax limit and need to pay basic income tax.
Government Support for Pensioners
James Murray told Parliament that the State Pension remains the foundation of retirement income. He also highlighted other benefits available to support pensioners:
- Free eye tests
- Free NHS prescriptions
- Free bus passes
- Pension Credit for low-income pensioners
- Housing Benefit for eligible renters
These benefits help older people manage everyday costs and maintain their standard of living.
With the Triple Lock secured for the rest of this Parliament, pensioners can expect their State Pension to rise by around £1,900 by 2029. However, the growing concern is that frozen tax bands are slowly pushing more pensioners into the taxpayer bracket, even with modest incomes.
While those with only a State Pension are safe from tax for now, anyone with other income sources may need to keep a close eye on their finances. Pensioners are encouraged to check their income, use HMRC’s tax tools, and apply for any benefits they may be missing.
FAQs
What is the Triple Lock system for pensions?
It guarantees that the State Pension increases every year by whichever is higher: inflation, average earnings growth, or 2.5%.
How much will the State Pension increase by 2029?
It is projected to increase by around £1,900 in total by 2029, based on Office for Budget Responsibility forecasts.
Will pensioners have to pay tax on their State Pension?
Only if your total income, including private pensions or savings, exceeds the personal allowance of £12,570. The State Pension alone is below this limit.
Why are more pensioners paying tax now?
Because the personal allowance is frozen at £12,570 while pensions are rising due to the Triple Lock. This pushes more pensioners above the tax threshold.
What other help is available for pensioners?
Eligible pensioners may also receive free NHS services, bus passes, Pension Credit, and Housing Benefit to support their living costs.
What happens if you were born in 1958, do you still get this payment…..
And do I get the cost of living payment also?…
Yes you will get Amanda Griffiths
I was born 1950 I think it should a lot more that what’s being offered at least 25 ,000 a year especially because we have paid insurances and taxes all our working lives which amounts to a lot of money per person each year
I receive state pension it’s my only source of income l have no savings am l entitled to any other allowances. My adult son resides with me not working at the moment l seem to not qualify for anything else don’t understand why this is.
I get a minimal private pension of 130 every 3 months. I now get none of it because it takes me over the threshold. What was the point of paying in to it??