State pension set to rise by over £400 in April after latest wages data released
10 September 2024, 07:44
The annual state pension is set to rise by £460 in April after the release of the latest wages data.
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The UK's 'triple lock' on state pensions means that payouts to OAPs rise in line with the average wage, inflation in September, or 2.5% - whichever is the highest.
Wages data released on Tuesday morning showed that average weekly wages rose by 4% in the three-month period to July.
That would take the full flat-rate pension to £11,962.60 a year, an increase of £460 on the current payout.
The rate of inflation for September has not been released yet, but prices rose by 2.2% in August.
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The expected pension increase is not final, as wage growth figures are subject to possible revisions and the government will confirm how much pensions will rise in the autumn.
It comes as the government faces a rebellion over cuts to the winter fuel allowance, which will see all but the country's poorest pensioners stripped of the regular payment.
The move has been met with unease among some Labour backbenchers who have said they feel unable to vote with the Government on Tuesday.
Keir Starmer said he recognised that scaling back the winter fuel payment was a "really tough decision" but said Labour must "secure the foundations" of the economy.
Mick Whelan believes the winter fuel allowance should be reinstalled universally
Meanwhile the rise in total pay for workers was the lowest for nearly four years, according to the Office for National Statistics.
The ONS also said the rate of unemployment was 4.1% over the three months to July, dropping from 4.2% over the previous three months.
Liz McKeown, director of economic statistics at the ONS, said: "Growth in total pay has slowed markedly again as one-off payments made to many public sector workers in June and July last year continue to affect the figures.
"Basic pay growth also continued to slow, though less sharply.
"When taken together on a comparable basis, our different measures all show growth in the number of employees over the latest quarter, though annual growth has slowed over the year."
