Nearly 7 million Brits to be locked out of 2026 State Pension increase

Nearly seven million pensioners are "falling below the radar" and will not benefit from the full State Pension increase next April, according to new analysis. The triple lock pledge ensures that the State Pension increases annually by the highest of wage growth, inflation or 2.5%. The latest data shows wage growth at 5%, surpassing both inflation, which was measured at 3.8% in July, and the 2.5% minimum.

This could mean the new full State Pension may rise by 5% in April 2026, representing a £599 increase to £12,572 a year, as reported by the Telegraph. Approximately 8.9 million retirees on the older, basic State Pension will also see the value of the core element increase under the triple lock, taking their annual entitlement to an estimated £9,634. However, around 6.9 million people in this group receive extra income from the additional earnings-related pension (SERPS). Unlike the core entitlement, SERPS rises only in line with inflation.

With inflation currently below wage growth, the uplift in SERPS will be smaller, which could leave older pensioners with a lower overall increase than those on the newer system.

Becky O'Connor, of PensionsBee, told the Telegraph: "It's tempting to fall into the trap of thinking all older people are going to benefit disproportionately from State Pension increases compared to working people.

"But the State Pension system is complicated, and in fact, millions of older people do not get the increases, and this falls below the radar.

"There is a hidden layer of pension poverty, and the majority of pensioners who rely on the basic State Pension are susceptible to it. Headline increases to the new State Pension hide the reality for millions."

From 2011 onwards, the basic State Pension has enjoyed protection under the triple lock formula, whilst SERPS and other legacy top-ups remain tied solely to inflation rates. This divided method means yearly rises can vary dramatically.

The triple lock's future has come under scrutiny in recent months, after worrying data released by the Office for Budget Responsibility (OBR) revealed the substantial expense of maintaining the policy going forward.

The report indicates that the yearly expense of preserving the triple lock could hit £15.5 billion by 2030, representing a threefold increase from the OBR's initial projection.

However, the Government has declared it remains "committed" to maintaining the existing policy until the end of Parliament.

A Treasury spokesperson responded to the report by saying: "We are committed to supporting pensioners and giving them the dignity and security they deserve in retirement."

The precise State Pension rate increase due in April will not be confirmed until October, when wage and inflation data are finalised.