From April 2026, the State Pension in the UK is set to rise by around £560 a year under the triple lock guarantee. This increase, approximately 4.7%, will take the full new State Pension to just over £12,534 annually — only £35 below the £12,570 income tax threshold.
For many retirees, this means their pension income alone will soon bring them close to paying income tax. With the personal allowance frozen until at least 2028, the State Pension is on track to overtake the threshold by April 2027, creating a significant issue for pensioners and the Treasury alike.
Key Facts & Figures
| Detail | Current Value | April 2026 (Projected) |
|---|---|---|
| Weekly full new State Pension | £230.25 | £241.05 |
| Annual full new State Pension | £11,973 | £12,534.60 |
| Weekly basic State Pension (pre-2016 retirees) | £176.45 | £184.75 |
| Annual basic State Pension | £9,175 | £9,607 |
| Increase percentage | — | 4.7% |
| Personal Allowance (income tax threshold) | £12,570 | Frozen until at least 2028 |
What Is the Triple Lock?
The triple lock ensures the State Pension increases each April by the highest of:
- Average earnings growth
- Inflation (CPI)
- A minimum of 2.5%
With wage growth at 4.7%, this will drive the April 2026 increase, outpacing inflation and the guaranteed 2.5%.
Why Pensioners Are Nearing the Tax Threshold
- The new State Pension will rise to £12,534.60 per year, leaving just £35 of headroom below the £12,570 tax-free allowance.
- By April 2027, the pension is expected to exceed the personal allowance, meaning even retirees with no other income will start paying tax.
- Pensioners with private pensions, savings income, or SERPS/S2P top-ups may already cross the allowance, meaning more retirees will be pulled into the tax net.
The Dilemma for Government
The frozen tax threshold is colliding with annual pension rises:
- Lifting the personal allowance would reduce tax receipts but ease pressure on retirees.
- Reforming or scrapping the triple lock could save money but would be politically risky, especially before a general election.
- As things stand, the current policy will steadily drag more pensioners into paying tax — almost three quarters already do.
What Retirees Should Expect
- Higher weekly pension: From £230.25 to £241.05.
- Annual income close to £12,535, nearly at the tax threshold.
- Those with additional income streams may see a larger tax bill.
- Future rises could make State Pension alone taxable from 2027.
The upcoming £560 State Pension rise is welcome relief for many retirees battling high living costs. Yet it also creates a new challenge: with the pension now perilously close to the frozen tax threshold, many will find themselves paying income tax on income that was once tax-free.
Unless the government raises the personal allowance or reforms the triple lock, pensioners will face higher tax bills in the years ahead.
FAQs
How much will the State Pension rise by in April 2026?
It will increase by 4.7%, giving pensioners about £560 more per year.
Will this rise push retirees into paying income tax?
Yes — many are already paying due to frozen thresholds. From April 2027, even those with only State Pension income will become taxpayers.
Why is the allowance freeze a problem?
The £12,570 personal allowance is frozen until at least 2028. As the pension rises each year, more pensioners are automatically dragged into tax.