From 6 April, the state pension will increase by 4.1%, as calculated by the triple lock, and so above the latest inflation figure of 2.8%.

But the increase could be a mixed blessing for pensioners, pushing many into a tax-paying bracket for the first time or resulting in higher tax bills, experts have warned. 

Thanks to the triple lock, the full state pension will rise to £12,014, close to the tax-free threshold of £12,570.

It means around 12 million pensioners will receive more in their state pension from this weekend, bringing them close to the amount that can be received without incurring tax liability.

Steven Cameron, pensions director at Aegon, said: “There’s a considerable gap between the state pension increase being set and it coming into payment the following April. But this year, the increase remains above the latest inflation figure.”

He said for someone on the full new state pension, the rise equates to an increase of £9.10 from £221.20 to £230.30 per week, or £11,975.60 per year.

For those who reached state pension age before 6 April 2016 and are therefore on the basic state pension, the increase will be £6.95, bringing income up to £176.45 per week, or £9,1755.40 per year.

Mr Cameron said: “While a 4.1% boost is down on the past two state pension increases of 10.1% (April 2023) and 6.7% (April 2024), it still represents the fourth-highest jump since the triple lock was implemented in 2011.”

If the triple lock continues to rise, the state pension could soon exceed the personal allowance and be taxable, warned Clare Moffat, pensions expert at Royal London.

She said: “With inflation expected to be 3.2% over the next year according to predictions by the OBR, and assuming average weekly earnings do not exceed this, the new state pension would increase to £12,398.57 in 2026/27, which is just 1.4% below the current personal tax allowance.

“Pensioners receiving additional income from private or workplace pensions will see a reduction in their monthly income payments due to tax deductions.”