The Treasury has confirmed that it will increase the State Pension by 4.8% for 2026/27 in April under the earnings trigger of the Triple Lock mechanism.

It said those on the full rate of the new State Pension are set to receive more than £550 a year more, or just over £11 a week.

The Triple Lock guarantees that the State Pension increases annually by the highest of inflation, average earnings growth or 2.5 per cent. As a result from next April the rate of the full new State Pension is expected to increase to just over £240 a week.

That £550 a year increase is £120 more than what it would have been if it had been uprated only by inflation, the Treasury said.

The full basic State Pension is expected to rise by around an extra £440 a year.

The new State Pension will increase to £241.30 a week, up from its current rate of £230.25 a week. It means pensioners could see their total payment for the year rise to £12,534.60 from the £11,973 a year.

The old basic State Pension is expected to go up to £184.90 a week or £9,614.80 a year.

Rachel Reeves, Chancellor, said: “We’re supporting pensioners to give them the security in retirement they deserve. At the Budget this week I will set out how we will take the fair choices to deliver on the country's priorities to cut NHS waiting lists, cut national debt and cut the cost of living.”

David Brooks, head of policy at independent pensions consultancy Broadstone, said: “Confirmation that the State Pension will increase by 4.8% takes the annual benefit right up to the brink of the frozen Personal Allowance threshold and will drag more retirees into paying Income Tax next year.

“The outsized increase to the State Pension will once more raise questions around the long-term viability of the Triple Lock given the accelerating cost to the Exchequer. With the State Pension Age review ongoing, it will be interesting to see if it makes any proposals beyond raising the age of receipt either higher or faster.”

He said the news will be reassuring for those pensioners who are largely reliant on the State Pension to provide the majority of their income.

Steven Cameron, pensions director at Aegon, said: "While welcome, the increase does come with a sting in the tail for future years. Under the Triple Lock, the full state pension will increase by a minimum of 2.5% in future years, meaning in 2027/28 it will be at least £12,861. This is above the personal allowance of £12,570, which is already frozen until April 2028, with speculation of an extended freeze until 2030.

"This means someone whose sole income is the full new State Pension will face a tax charge on the excess, a minimum of £58 a year – something many will see as a case of giving with one hand and taking with the other."