State pensioners said payments could be increased to £1,001 a month

State pensions will rise to more than £1,000 a month, experts have predicted. Steven Cameron, director of pensions at Aegon, explained that the triple lock could increase payouts by up to 5.7% next April as the cost of living crisis continues.

Steven said: “The specific figure used to determine the triple lock will be the annual earnings growth for the period ending May to July 2024, which will be published in September. Barring a significant slowdown in earnings growth over the next few months, this figure will likely drive the triple block next year.”

The State Pension increases in April each year based on a system known as the triple lock. This just means that the rise matches one of three per cent, with the government choosing the highest number: how much general costs (inflation) have risen, based on September’s consumer price index (CPI), the average rise in wages between May and July, or 2.5%.

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The triple lock is currently set to be driven by the earnings growth element, which is 5.7%. Steven continued: “If price inflation remains low and earnings growth gradually falls back to levels more typical of the last decade, then the state pension’s triple lock formula can produce more predictable and affordable increases.”

“This will make it less expensive for the next Government to commit to maintaining it for another 5 years. We may see lower growth rates, but in times of lower inflation, the State Pension does not need to rise as much to allow pensioners to maintain their standard of living.”

“However, rather than a three-way year-on-year comparison, we recommend averaging the earnings component over a three-year period, which could mitigate excessive volatility and help ensure intergenerational equity.”

The full state pension could rise to £1,001 a month, based on a new 5.7% rise, to £233 a week, while the basic lump sum will rise to £178 a week, or £773 pounds per month.