The UK state pension is likely to rise above £13,000 a year, the BBC reported on Tuesday, after wage growth slowed to 3.9%. The figure is used to set the pension under the triple lock, which raises payments by whichever is highest: average earnings, inflation, or 2.5%.
Because the new rate would sit above the personal allowance, several outlets reported that the state pension would become taxable for the first time. The Financial Times said the payment will surpass the income tax threshold next year, while The Times reported the same shift toward taxation.
Bloomberg reported that Healey has said he will ensure pensioners who land just over the threshold do not pay tax. The reports did not set out how that would work.
The triple lock has drawn fresh scrutiny as the figures emerged. The Guardian asked whether the policy is a lifeline or simply unaffordable, noting it is described as costing billions. The BBC tied the expected increase directly to the slower pace of wage growth.
Taken together, the reports point to a squeeze at the lower end of the pension scale, where a payment slightly above the tax threshold could pull some recipients into the tax system for the first time, even as the government signals relief for those closest to the line.
What to watch next: the confirmed earnings figure and the official uprating announcement, which will settle the exact pension rate and how the tax treatment is applied.
