A leading independent pensions, investments and employee benefits specialist has said that ‘sticky inflation’ is likely to add hundreds of pounds to the State Pension next year. In April, State Pension and most benefits increased by 10.1 per cent as part of the annual Department for Work and Pensions (DWP) uprating.
The full New State Pension increased from £185.15 per week to £203.85, equivalent to £815.40 every four-week pay period and £10,600 over the 2023/24 financial year. The Basic State Pension rose to £156.20, from £141.85, equivalent to £624.80 every four-week period and over £8,122 over the coming year.
However, the unchanged May inflation figure of 8.7% could see pensioner households receive another bumper boost next April. Broadstone has calculated that if the Consumer Price Index (CPI) stays at its current level of 8% the State Pension would rise by £848 to £11,448 a year and even if inflation drops to 6% it would still drive a £636 increase.
