2018 increase to State Pension confirmed
The State Pension will increase in 2018 to £8,545.50 p.a. This increase of circa £250 a year is the biggest annual increase in the last five years.
State Pensions increase each year by the greater of inflation, earnings growth or 2.5%. This is often referred to as the “triple lock”. Inflation is measured by the increase in a number of general household expenses for the 12 months to September. Inflation for the 12 months to September 2017 was 3%. As this is higher than both the increase in earnings for the same period and a fixed 2.5% increase, it is the inflation figure that will be used by the Department of Work and Pensions to calculate the State Pension increase in April 2018.
