In September 2017, the 12-month rate for Consumer Prices Index (CPI) inflation reached 3% for the first time since April 2012. Increases to the State Pension are currently controlled by what is commonly referred to as the ‘triple lock’. This means that each year when the State Pension rises, it will be by the greater of either:

• inflation (as measured by the CPI in the previous September),
• the increase in average earnings, or
• 2.5%.

Consequently, anyone receiving the full, flat-rate state pension will see this rise from £159.55 per week to £164.30 per week - an increase equal to nearly £250 a year. Anyone who retired before April 2016 and is receiving a State Pension under the old system (i.e. the basic State Pension plus an earnings-related pension) will see their basic State Pension element rise from £122.30 to £125.95 per week. These increases will apply from April 2018.