The State Pension is expected to rise next year by 4.1% under the Triple Lock guarantee.

From April 2025 the State Pension will increase from £221.20 per week (£11,502 per year) to £230.30 per week (£11,975 per year).

The ‘old’ basic State Pension will increase from £169.50 per week (£8,814 per year) to £176.45 per week (£9,175 per year).

Under the Triple Lock guarantee the State Pension rises by the highest of average earnings growth, inflation (CPI), or 2.5%.

CPI inflation has dropped to 1.7% according to the latest figures out today so the average earnings data will fuel the increase which is well above inflation and above the 2.5% minimum increase.

Yesterday the Office for National Statistics said that the average earnings growth in the three months to July was 4.1%, up from its previous estimate of 4%, nudging the State Pension increase slightly higher than expected.

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said the rise was good news for pensioners struggling with soaring costs.

She said: “After several years of blockbusting increases, the Government will draw a sigh of relief that this increase is more manageable, but the debate will still rage as to how to manage the costs of State Pension long-term. The usual levers of increasing State Pension age risk running out of steam as longevity slows, so this tricky issue should be front and centre of the ongoing pension review.”

According to calculations from platform AJ Bell, the single State Pension is set to exceed the personal allowance of £12,570 by 2027/28, even if the benefit increases by only 2.5% a year (the lowest possible element of the Triple Lock guarantee).

Rachel Vahey, head of public policy at AJ Bell, said: “The chancellor, Rachel Reeves, may choose to shout out about this inflation-beating boost in her first Budget in two weeks’ time.

"Criticism of the decision to scrap the Winter Fuel Payment for all pensioners except those that claim Pension Credit still lingers, and the government will hope this rise in Brits’ state pensions will publicly reinforce its commitment to the Triple Lock, as well as overshadowing the £200 most pensioners will lose this winter.

“But how long they can keep these promises remains to be seen. The State Pension is now at a level perilously close to the frozen personal allowance and should overtake it in two years’ time. At that point something must surely give. But slowing the increase in state pension growth or unfreezing the personal allowance both seem unlikely.

“It could be that this fast-approaching crunch time means the government will finally be forced to address the question of how much the state pension should really offer, at what age, and how it can increase payments sustainably each year.”