DWP rules stopping 10 million state pensioners £489 triple lock hike

The DWP state pension is on course to rise by 3.9 per cent next April

Around 10 million state pensioners face being denied the complete triple lock uplift next April, according to Department for Work and Pensions (DWP) regulations. The DWP state pension is set to increase by 3.9 per cent, following September's inflation data being overshadowed by wage growth figures.

For those claiming the full, new state pension, this translates to a £489 annual boost. However, out of approximately 13.3 million individuals receiving the DWP state pension, merely three million will benefit from the full rise. Those claiming the basic state pension or a reduced new state pension will see a smaller uplift, reports Birmingham Live.

A substantial 420,000 recipients, meanwhile, will have their payments frozen at the level when they left the country - due to living overseas. Did you know you can make YorkshireLive a preferred source of Yorkshire news in Google, which will mean you get more of our breaking news, exclusives, and must-read stories straight away? Here's more informationabout what this means and how to do it - you can also do it by clicking here*.*

Data reveals that 2.3 million individuals received a diminished payout from their new state pension, frequently because they were either enrolled in "contracted out" occupational pension schemes or failed to accumulate adequate National Insurance contributions. Six million individuals, meanwhile, are claiming the full basic state pension.

The remaining 1.9 million who are receiving a reduced pension will be granted an even more modest increase. Andrew Tully, from Nucleus, explained: "While the headlines will say the state pension is increasing by almost £500, the majority of people won't receive that amount. The triple lock is a headline increase, but it's certainly not a universal one.

"Millions of pensioners may also find that parts of their state pension only rise with inflation, leaving their overall increase below the figure that appears in the news. For many, higher tax bills and continued cost-of-living pressures will eat into the increase, making the headline rise feel less generous in practice."

Tom Selby, from wealth manager AJ Bell, commented: "While the old basic state pension is significantly lower than the new state pension, many on the former actually receive more because they have extra entitlements, like Serps, that are no longer available."

A Department for Work and Pensions spokesperson stated: "The triple lock isn't a fixed amount of money, it's a percentage increase applied to the full rates of both the basic and new state pensions. What people actually receive depends on their own state pension entitlement, including their National Insurance record.

"The £489 figure is therefore an example of what someone receiving the full new State Pension would get. The same triple lock percentage applies to the full basic state pension, although this results in a different cash increase. Our policy on frozen pensions overseas is longstanding, and we continue to uprate state pensions overseas where there is a legal requirement to do so."