In an 8.5% boost driven by the government’s triple lock policy, UK’s state pension rates will rise substantially, though nearly half a million retirees living abroad will miss out.
In April 2024, UK pensioners are set to receive a substantial increase in their state pensions, with rates rising by 8.5% as part of the government’s triple lock guarantee policy. This policy ensures that the state pension increases annually by the highest of three figures: inflation, average wage increase, or a minimum of 2.5%. This year, the increase is based on the average wage increase of 8.5%. As a result, weekly payments will rise to £221.20 for the new state pension and £169.50 for the basic state pension, marking the second-largest increase in state pension rates.
The rise arrives amidst discussions about the long-term sustainability of the triple lock mechanism, given the increasing cost of pension payments. The current state pension age is 66, with plans to raise it to 67 starting from May 6, 2026. For those who may not qualify for the full amount, pension credit is available to supplement incomes for eligible individuals.
Despite the increase, nearly half a million UK retirees living abroad will not benefit from the uplift. This is due to their pensions being frozen as a result of residing in countries that lack a reciprocal agreement with the UK. This situation affects about 450,000 Britons, including cases highlighted by the “End Frozen Pensions” campaign and the International Consortium of British Pensioners. Among the individuals impacted is a 98-year-old war veteran living in Canada, whose pension remains at £72.50 per week without annual adjustments for inflation, leading to diminished value over time. The campaign to address these frozen pensions has gained support from various Members of Parliament across different political parties.
