DWP state pensioners born after 1951 set for bumper £1,002 payments

A forecast 3.9 per cent triple lock increase could raise the full new state pension

State pensioners born after 1951 could be in line for an extra boost of up to £488.80 annually from April 2027, according to current triple lock projections.

This more substantial rise applies mainly to those receiving the new state pension - specifically men born after 1951 and women born after 1953. The triple lock system ensures pensions increase each year by whichever is highest: inflation, wage growth, or a 2.5% minimum rate, with wage growth presently forecast to be the determining factor.

Current projections point to a 3.9 per cent rise, led by wage growth, which would bring the full new state pension to roughly £250.70 weekly - or £1,002 per payment period. The increase from the Department for Work and Pensions, or DWP, arrives as Labour Party Prime Minister Andy Burnham has pledged to maintain the triple lock arrangement.

Average weekly wages rose by 3.9 per cent between May and July, the reporting window utilised in the government's calculations, reports Birmingham Live. The rate appears almost certain to exceed CPI inflation, which is measured at the end of September. The Bank of England doesn't anticipate inflation surpassing 3.2 per cent this year.

Pensions minister Torsten Bell stated: "In line with the commitment made at Budget 2025, pensioners who only just the exceed the personal allowance will not have the administrative burden of paying small amounts of tax in this Parliament. The Chancellor will set out further details on how that commitment will be delivered at the Budget."

Helen Morrissey, Head of Retirement Analysis at Hargreaves Lansdown, commented: "According to the ONS, average wage growth stood at 3.9%. We may have just over a month to wait until the relevant inflation figure is published, but it currently stands at 2.9%, so unless there's a real surge it seems likely that the average wage figure will be used.

"Such an increase would put someone on the full new state pension on course to receive £250.70 a week from next April – up from the current £241.30 per week. Someone on a full basic state pension would receive £192.10 a week – up from £184.90. This will be a welcome boost to pensioner incomes but even a full state pension is only ever going to cover the basics. If you want to live well in retirement, then you will need to take your pension planning into your own hands."