𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

State Pensioners are set to get an even bigger rise next April, according to new figures just release, a BBC expert has said. This morning the Office for National Statistics (ONS) said regular wage growth fell back to 4.7% in the three months to August, down from 4.8% in the previous three months, and hitting a fresh low of more than three years.

However Paul Lewis, presenter of Radio 4’s Money Box said that the wage growth figure for May-July this year, which is used in the triple lock calculations, has been revised upwards – from 4.7% to 4.8%. This means that people will be getting more than anticipated.

He said on X: “State pension to rise by more – subject to confirmation. Annual earnings growth May-July – used in state pension triple lock – revised up from 4.7% to 4.8%. So basic and new April weekly pension rates, estimated at £184.75 and £241.05, now £184.90 and £241.30. Adds £100mn+ to state pension bill.”

The latest figures show UK earnings growth has eased back further as the rate of unemployment hit its highest level for more than four years but official figures also showed signs the jobs market may be stabilising.

The Office for National Statistics (ONS) said regular wage growth fell back to 4.7% in the three months to August, down from 4.8% in the previous three months, and hitting a fresh low of more than three years.

The jobless rate increased to 4.8% in the three months to August, up from 4.7% in the previous three months and the highest since March to January 2021, the ONS added, although it said the figure needs to be treated with caution as it continues to overhaul its labour market survey.

But it said there were signs of the jobs market downturn “levelling off”, with a rise in UK workers on payrolls – up 10,000 between July and August, following a minor increase the previous month, though early estimates signalled a 10,000 drop during September to 30.3 million.

ONS director of economic statistics Liz McKeown said: “After a long period of weak hiring activity, there are signs that the falls we have seen in both payroll numbers and vacancies are now levelling off.

“We see different patterns across the age ranges with record numbers of over-65s in work, while the increase in unemployment was driven mostly by younger people.”

People on the new full state pension are set for a rise of over £500 a year from next April. Under the triple lock guarantee, the state pension increases every April in line with whichever is the highest of total earnings growth in the year from May to July of the previous year, CPI (Consumer Prices Index) inflation in September of the previous year, or 2.5%.

Previous figures from the ONS showed people with wage growth at 4.7% would get a full new state pension increase from its current level of £230.25 per week to £241.05 per week from April.

Those retiring on the basic state pension would see their weekly income increase from £176.45 per week to £184.75.

However the new figures mean that would be £241.30 for the new state pension and £184.90 for the basic.

Martin Beck, chief economist at WPI Strategy, said: “The latest UK labour market numbers suggest the jobs market may be stabilising after a period of softening.”

He added: “April’s rise in employer national insurance contributions and the sharp hike in the national living wage have clearly weighed on hiring, but figures over the summer suggest the worst of the damage is passing.

“Even so, the jobs market remains more fragile than at any time in recent years.”

Matt Swannell, chief economic adviser to the EY Item Club, said despite falling wage growth, the Bank of England will need to be convinced further that inflation pressures are easing before cutting interest rates again.

“We don’t expect the Bank of England to cut Bank Rate again until the first half of 2026,” he said.