Last Updated on 1 minute ago by TodayWhy Editorial
Updated 21 October 2026. The full new state pension is on course to exceed £13,000 a year from April 2027 under the triple lock.
Why is the new state pension over £13,000? Because the triple lock will raise it by 3.9% in April 2027, in line with average earnings growth. That takes the full new state pension from £241.30 a week (£12,547 a year) to £250.70 a week (£13,036 a year). September’s inflation figure of 3.5% was lower, so earnings decide the rise. The personal allowance stays frozen at £12,570, which means the full new state pension will sit above the tax-free threshold for the first time. That is the short answer. The rest is how the triple lock works, who gets the full rate, and what the tax position actually means.
Why the new state pension is over £13,000
The triple lock raises the state pension each April by the highest of three numbers: September’s CPI inflation, average earnings growth from May to July, or 2.5%. For April 2027 the figures are in. Average total earnings rose 3.9% in the three months to July 2026. September CPI was 3.5%. Earnings win. The government is expected to confirm the 3.9% rise at the Budget. ITV and iNews both reported the arithmetic on 21 October.
The current full new state pension is £241.30 a week. A 3.9% increase adds about £9.40 a week and roughly £489 a year. The annual figure moves from £12,547 to £13,036. The full basic state pension, paid to people who reached state pension age before 6 April 2016, rises from £184.90 to £192.10 a week, or about £9,989 a year. Many people do not receive the full rate. The amount depends on National Insurance qualifying years and whether they were contracted out before 2016.
The numbers
| Now (2026–27) | From April 2027 (3.9%) | |
|---|---|---|
| Full new state pension (weekly) | £241.30 | £250.70 |
| Full new state pension (yearly) | £12,547 | £13,036 |
| Full basic state pension (weekly) | £184.90 | £192.10 |
| Full basic state pension (yearly) | ~£9,615 | ~£9,989 |
| Personal allowance | £12,570 | £12,570 (frozen) |
The yearly figures assume a full year at the new rate. In practice the first week of the new tax year is paid at the previous rate, so the actual cash received in 2027–28 is a few pounds lower. The Institute for Fiscal Studies notes that the triple lock has raised the full new state pension by about 12% more than earnings alone would have done since 2010. That is why the new state pension is over £13,000 now and was not a decade ago.
How the triple lock works
The triple lock has been in place since 2011. It applies to the flat-rate parts of the state pension: the new state pension and the basic state pension. Additional state pension and protected payments rise with CPI only. The three tests are fixed by statute. Once the September CPI and the May–July earnings figures are published, the highest of the three decides the April rise. There is no discretion once the numbers land.
In April 2026 the rise was 4.8%, set by earnings. In April 2027 it is 3.9%, again set by earnings. The Office for Budget Responsibility had earlier projected a lower earnings figure; the actual May–July number came in higher. The government has said the triple lock will stay in its current form for the rest of this parliament. That covers the rises due in April 2027, 2028 and 2029. From April 2030 the government plans to adjust it. Prime Minister Andy Burnham told the Labour conference in September 2026 that the earnings link would change, with the savings used for a National Care Service. The detail is not yet legislated. Until then the three-way test remains.
Who gets the full new state pension
The full new state pension is paid to people who reached state pension age after 5 April 2016 and have enough qualifying years. Most people need 35 qualifying years. If they were contracted out before 2016 they usually need more. You can check your forecast on the gov.uk state pension forecast service. The full rate is the maximum under the new rules. Many people receive less because of gaps in their National Insurance record or because of contracting out. Some receive more if they have a protected payment from the old additional state pension.
The basic state pension is the older system, for people who reached state pension age before 6 April 2016. Its full rate is lower. The two systems are not interchangeable. If you are not sure which one you are on, the forecast service will tell you.
The tax threshold problem
The personal allowance has been frozen at £12,570 since April 2021. The freeze has been extended to April 2031. The full new state pension is now set to rise above that line. From April 2027 someone receiving only the full new state pension will have income of about £13,036 against an allowance of £12,570. The gap is roughly £466. Under normal rules that would create a tax liability. The government has said that people whose only income is the state pension and who sit above the allowance will not have to pay income tax on it. The mechanism for that has not been published. Martin Lewis has noted that the pledge exists but the detail is still missing.
Anyone with other income — a workplace pension, private pension, or earnings — will still pay tax on the amount above the allowance in the normal way. The state pension is taxable. The question is only whether the government creates a special rule for people who have nothing else. Until that rule is written, the practical answer for most pensioners with other income is that the rise will push more of them into tax or deeper into it.
What happens after 2030
The government has said the triple lock will be adjusted from April 2030. The stated direction is to remove the pure earnings link and move toward a system that rises by the higher of inflation or 2.5%, with a commitment to keep pace with earnings over time. The Institute for Fiscal Studies describes this as removing the ratchet effect: one strong earnings year no longer lifts the pension permanently above the earnings path. The change has not been legislated. It is a political commitment for the next parliament. Until a Bill is passed, the current triple lock remains the law for the rises due in 2027, 2028 and 2029.
For readers in Germany the parallel is the regular pension adjustment. Germany’s pension rise for 2027 is currently forecast at 4.4%, as covered in our piece on the Rentenerhöhung 2027. The UK mechanism is different: it uses a three-way test rather than a wage-and-contribution formula, and it is set in April rather than July. The political pressure is similar. Both systems face questions about cost and about how much of the rise is offset by tax.
Why the figure matters for most pensioners
The headline £13,036 is the full new state pension. Most people do not receive exactly that amount. The average payment is lower because of incomplete National Insurance records and because of contracting out. For someone on a partial rate the rise is still 3.9%, but the absolute pounds are smaller and the tax threshold may not be crossed. The political argument is about the full rate because that is the number the government advertises and the number that now sits above the personal allowance. For individual pensioners the relevant number is the one on their own forecast, not the full rate.
The rise also interacts with other income. Pension Credit, the means-tested top-up, has its own rates and its own uprating rules. Housing Benefit and Council Tax Reduction are calculated on net income. A higher state pension can reduce entitlement to those benefits for people who are close to the thresholds. The net gain is therefore not always the full £489. That is a standard feature of means-tested systems and it is one reason the cash rise does not translate one-for-one into higher living standards for everyone.
How to check your own figure
The only reliable way to know what you will receive is to check your state pension forecast. The service is on gov.uk. It shows your current entitlement, your state pension age, and whether you can increase the amount by filling gaps in your National Insurance record. Voluntary contributions can fill some gaps, but the cost and the benefit need to be calculated individually. The forecast also shows whether you are on the new state pension or the basic state pension. That distinction matters because the two rates are different and the rules for increasing them are different.
If you already receive the state pension, the annual uprating letter from the Department for Work and Pensions will show the new weekly rate before April. The letter is the practical confirmation. Until it arrives the 3.9% figure is the expected rate based on the published earnings and inflation numbers. Formal confirmation comes with the Budget and the subsequent uprating order.
The longer context is the cost of the triple lock. The Institute for Fiscal Studies has tracked the cumulative effect since 2011. Because the pension rises by the highest of three measures, it has outpaced both prices and earnings over the period. That is the point of the policy. It is also the reason the government is looking at an adjustment from 2030. The savings from changing the earnings link are intended for a National Care Service. Whether that trade-off is accepted is a political question for the next parliament. For the next three Aprils the arithmetic is fixed by the current rules.
For someone approaching state pension age the practical steps are the same as before. Check the forecast. Check whether voluntary contributions are worth making. Check whether deferring the pension increases the weekly rate enough to matter. The £13,036 figure is the full rate under the new system from April 2027. It is not a guarantee for every individual. It is the ceiling the triple lock is about to set, and it is the number that now sits above the frozen personal allowance.
The short answer
Why is the new state pension over £13,000? Because the triple lock raises it by 3.9% from April 2027, matching average earnings growth. The full rate moves from £12,547 to £13,036 a year. The personal allowance stays at £12,570, so the full new state pension crosses the tax-free line for the first time. The government has said people whose only income is the state pension will not pay tax on the excess, but the rule has not been published. The triple lock stays in its current form until 2030. After that the government plans to adjust it.
Frequently asked questions
Why is the new state pension over £13,000?
The triple lock raises it by 3.9% in April 2027 because average earnings growth (3.9%) was higher than September inflation (3.5%). That takes the full rate from £12,547 to £13,036 a year.
How much is the full new state pension from April 2027?
The expected rate is £250.70 a week, or about £13,036 a year, subject to formal confirmation at the Budget.
Will I pay tax on it?
If the state pension is your only income and it sits above the £12,570 personal allowance, the government has said you will not pay tax on the excess. The mechanism is not yet published. If you have other income, the normal tax rules apply.
Does everyone get the full rate?
No. The full new state pension requires enough National Insurance qualifying years, usually 35. Many people receive less. Check your forecast on gov.uk.
What is the triple lock?
It raises the state pension each April by the highest of September CPI, May–July average earnings growth, or 2.5%.
Will the triple lock end?
The government has said it will stay in its current form for the rest of this parliament and be adjusted from April 2030. The change has not been legislated.