State pension set to rise 2.6% as inflation falls below expectations

The Office for National Statistics today confirmed Consumer Prices Index (CPI) inflation stood at 2.4% in September. It is the September figure that is used to set the so-called ‘triple-lock', which guarantees the state pension increases in line with the highest of inflation, July's ‘average weekly earnings growth figure or 2.5%. Since average earnings growth stood at 2.6% in July, this figure will be used to boost the value of the state pension. It means the annual flat-rate state pension will rise £221 next April to £8,767.20. For its part, the lifetime allowance will increase in line ...