A welcome financial uplift is set to be confirmed for state pensioners this Wednesday.

The state pension is legally bound to rise annually based on one of three factors - inflation, wage growth or a fixed 2.5%.

This Wednesday, Chancellor Rachel Reeves is poised to reveal a range of spending and benefits plans for the upcoming fiscal year as part of the much-anticipated Autumn Budget 2025.

After months of intense speculation, we will finally discover this Wednesday whether various taxes are increasing or decreasing (though a decrease seems unlikely), as well as the extent to which various DWP benefits will increase for the next fiscal year commencing in April 2026.

Unless an unexpected and highly improbable policy shift is announced on Wednesday to alter state pension rules for 2026 at short notice (which would also necessitate Parliamentary procedure), the state pension is expected to rise once again in accordance with the Triple Lock system, reports the Express.

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Currently, the Triple Lock is projected to secure a £575 increase for new state pensioners from April 2026. This is due to the key average earnings figure being confirmed at 4.8%, which exceeds both inflation and the 2.5% minimum threshold for increases.

Therefore, state pensioners born on or after 6 April 1951 for men or 6 April 1953 for women are eligible to receive the new state pension when they reach the state pension age, currently 66, although this is set to increase to 67 in the near future.

Elderly state pensioners, who reached state pension age before 2016, will also receive the same 4.8% increase to their basic state pension. However, as the basic pension is set at a lower weekly rate, the overall increase will be less.

Payments for older state pensioners will rise from £176.45 to roughly £184.92, while new state pensioners will see an increase from the current £230.25 to approximately £241.30 per week.

Importantly, both of these amounts will remain below the £12,570 Personal Allowance threshold for income tax, although the total annual income for new state pensioners, at £12,548, is perilously close.

There has been no alteration to the tax rules for state pensioners, who have always been required to pay tax even after receiving their state pension. However, those without any other income or savings in 2026 will not be taxed on their state pension income alone.

The final Budget announcements are due this Wednesday.