State Pension and NMW increases

The triple lock system, which guarantees that State Pensions will increase each year by the greater of either annual price inflation as measured by the Consumer Prices Index (CPI), earnings growth, or 2.5%, remains in place.

Earnings growth was 3.9%, compared with 1.7% CPI, so the full rate of the Basic State Pension will increase to £134.25 (was £129.20 a week).

The New State Pension, which came into force in 2016, will also increase, from a maximum of £168.60 a week to £175.20 a week. The National Minimum Wage (NMW) will rise from £8.21 to £8.72 an hour for people aged over 25, and from £7.70 to £8.20 for those aged 21-24.

These increases will take effect from 6 April 2020.