The New State Pension could be worth up to £231.15 each week from next April.
New figures published by the Office for National Statistics earlier this month show that average regular earnings growth dropped to 4.5 per cent in the three months to June. This is down from 5.7 per cent last month and is the result of a one-off bonus paid to NHS staff last June.
The latest earnings growth figures could see the full New State Pension rise by nearly £10 per week from £221.20 to £231.15, and as the payment is usually made every four weeks this amounts to £924.60. This would give pensioners a monthly income boost of £39.80. Helen Morrissey, head of retirement analysis, Hargreaves Lansdown, said: “Wage growth remains robust, so it’s highly likely that next month’s figure will be the one used to uprate State Pension under the Triple Lock. This month’s figure comes in at 4.5 per cent - way down on last month’s 5.7 per cent, but it has been affected by the payment of one-off bonuses in the NHS last year.
Ms Morrissey also explained how the freeze on the Personal Allowance at £12,570 is going to push even more pensioners closer to the tax threshold. Latest State Pension News Steven Cameron, Pensions Director at Aegon, said the NHS bonus paid last year is expected to “suppress the figure due to be announced next month” but added that it is “highly likely that the increase will be based on earnings growth”.
He also highlighted how 10 million pensioners will miss out on at least £200 in Winter Fuel Payments this year. He said: “While next April’s State Pension increase is likely to be higher than current inflation, any increase in ‘real’ terms will be significantly dented by the loss of the Winter Fuel Payment.”
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