The state pension will rise in line with inflation in April 2018, the first time since the introduction of the triple lock policy, the Autumn Budget has confirmed.

According to Budget documents, the state pension will increase by 3 per cent, a cash increase of £3.65 per week for the full basic state pension. This is the first time the state pension will rise with inflation, as the level exceeds the 2.5 per cent stipulated in the triple lock policy.

Annually the rise is expected to result in an increase of £250.

Budget papers highlight that the triple lock uprating will also benefit the “poorest pensioners” through an increase to the Standard Minimum Guarantee in Pension Credit “to match the cash rise in the basic state pension”. This will be allocated through an increase in the Savings Credit threshold, the report documents.

In addition, the full new state pension will also be increased by the triple lock, rising by £4.80 per week.

Aegon head of pensions Kate Smith commented: “As expected, today’s Budget confirmed that the state pension will increase by 3% next April from £ 159.55 to at least £164.37. However, those who reached state pension age before 6 April 2015 and are on the old Basic State Pension will only see their State pension increase from £122.30 to £125.97 a week, giving an annual increase of only £191.”

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