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Submitted URL: http://cautioussweatshirt.com/
Effective URL: https://www.unbiased.co.uk/news/state-pension/state-pension-why-it-could-rise-by-more-than-17-over-two-years
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 1. Home
 2. News
 3. State Pension
 4. State pension: why it could rise by more than 17% over two years

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STATE PENSION: WHY IT COULD RISE BY MORE THAN 17% OVER TWO YEARS

Updated 29 June 2023

1min read

Lisa-Marie Voneshen

Updated 29 June 2023
1min read

The state pension is forecast to rise by more than 17% over two years, driven by
high inflation.

Every year, the state pension increases in April by either 2.5% or in line with
the rise in average earnings or inflation, known as the ‘triple lock.’

As September’s inflation figures are often used to determine state pension
increases, the state pension rose 10.1% to £203.85 (around £10,600 a year) in
April 2023 as inflation ran high.

Inflation is expected to fall to 7% in September – still higher than the Bank of
England’s (BoE) 2% target - so the state pension could rise by £742 to £11,342 a
year next April.

> In this scenario, the state pension will have soared by over 17% between April
> 2022 and April 2024.

However, inflation is proving difficult to forecast, falling slower than
expected this year.

Huw Pill, chief economist at the BoE, has recently revealed its forecasting
model has become ‘unworkable’ during the inflation crisis as it failed to fully
assess the impact of the Ukraine war on prices and wages.

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About the author
Lisa-Marie Voneshen
Lisa-Marie Voneshen is a Senior Content Writer at Unbiased. She is an
award-winning journalist with nearly a decade of experience writing and editing
content across various areas, including personal finance and investing.
 1. Home
 2. News
 3. State Pension
 4. State pension: why it could rise by more than 17% over two years

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