The State Pension will rise by 4.1% in April when the Triple Lock is implemented in full, the Chancellor said today in her Budget.

Ms Reeves said that the move will mean that the, “people who powered our country receive the pension they are owed.”

It had been widely expected that the State Pension would rise significantly. The increase is more than twice the current rate of CPI inflation which is 1.7%.

The increase will see the full new State Pension rise to £230.30 a week - £11,975 a year.

The full, old basic state pension will go up to £176.45 a week, £9,175 a year.

Many experts welcomed the confirmation of the increase but investment platform Hargreaves Lansdown warned, however, that much of the increase would be “removed” by the government’s decision to restrict the £300 Winter Fuel Allowance to pensioners receiving Pension Credit.

Helen Morrissey, head of retirement analysis, Hargreaves Lansdown, said: “Today’s news spells good news for pensioners who can look forward to a 4.1% increase in their State Pension from next year.

“However, the rise will be largely wiped out by the government’s decision to restrict the Winter Fuel payment to pensioners on Pension Credit. With fuel bills on the rise, the loss of up to £300 will be sorely felt and many face a tough winter ahead.”

Mike Ambery, retirement savings director at Standard Life, said the announcement meant that there would be no shocks for pensioners now but warned about the impact of frozen income tax thresholds.

He said: “The Personal Allowance has been frozen at £12,570 since 2021/2022 and currently remains fixed in for quite a few years to come.

“This means that the full new State Pension payment has grown from 70% of the allowance in 2019/20 to a likely 95% next year, leaving pensioners with only £594.40 of headroom before they begin paying income tax.

“While the state pension is on the up, it’s worth remembering that it still falls short of the £14,400 a single pensioner needs for a minimum standard of living in retirement, according to the Pensions and Lifetime Savings Association (PLSA).”

 • Check back later for updates to this developing story and other Budget coverage.