Earnings Revision to Impact State Pension
Average earnings growth has been revised up to 4.8%, which is expected to increase the full new State Pension to approximately £12,590 next April.
This increase will exceed the Personal Allowance of £12,570 for the first time, potentially subjecting pensioners to income tax.
David Brooks of Broadstone warns that this could mean pensioners face tax on their income while highlighting the rising cost of the Triple Lock.
- Average earnings growth for May-July was revised up from 4.7% to 4.8%.
- The full new State Pension is likely to increase to around £12,590 next April for 2026/27.
- The DWP calculates the State Pension increase by applying the uprating to the weekly total, converting to a day rate, and then multiplying by 365.25.
Author's summary: Revised earnings growth to increase State Pension to £12,590.