On 24 September 2025, ICB wrote about the speculation of the increase that will apply to the two State Pensions:
1. The basic State Pension (bSP) for those who reached State Pension age before April 2016; and
2. The new State Pension (nSP) for those who reached State Pension age after April 2016
The UK Government has pledged to increase both the bSP and nSP by the Triple Lock, however, this is dependent on knowing three values:
1. Earnings inflation;
2. Prices inflation (measured by the Consumer Prices Index (CPI)); or
3. 2.5%
Both State Pensions will increase in April 2026 by the higher of the above three values.
In September 2025, we wrote that we had the value of earnings inflation (4.7%) and, of course, the 2.5% figure. However, to be sure of the increase to be applied, we needed to wait for the publication of the CPI value for the 12 months to September 2025. This was published by the Office for National Statistics (ONS) on 22 October 2025 as 3.8%.
If the UK Government is to maintain the Triple Lock, we now have all the values necessary for them to make their calculation decisions, remembering that State Pensions will increase by the highest value:
|
Earnings inflation
|
4.7%
|
|
CPI inflation
|
3.8%
|
|
Baseline increase
|
2.5%
|
An increase of 4.7% to the current values will maintain the UK Government’s commitment to the Triple Lock, if confirmed.
For Bookkeepers
ICB maintains that personally and professionally, knowing the value of the State Pension is important. The value of the State Pension increase will be confirmed at this year’s next ‘fiscal event’ which is the UK Budget on 26 November 2025.
