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

September CPI at 2.4%

Julian Marr
clock • 2 min read

With inflation coming in below expectations in September, the state pension is set to rise 2.6% from April next year - slightly below the 3% increase seen in both 2017 and 2018.

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 ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Average pension transfer took just 11 days at tax year-end

Average pension transfer took just 11 days at tax year-end

Origo says transfer times decreased around tax year-end with half taking seven days or less

Jasmine Urquhart
clock 17 June 2025 • 2 min read
IFAs 'have role to play' in tackling 'blissful ignorance' around pensions

IFAs 'have role to play' in tackling 'blissful ignorance' around pensions

Advisers must ‘open people’s eyes to the reality’

Isabel Baxter
clock 16 June 2025 • 4 min read
We need to work together to tackle pension overconfidence

We need to work together to tackle pension overconfidence

'Clients may assume they're on the right track simply because they're paying into a pension'

Ahmed Bawa
clock 13 June 2025 • 4 min read