Pensioners are set for another above-inflation boost next year as the state pension is set to be increased by £400 due to its link to average earnings.
UK pensions are guaranteed by the triple lock, which means they go up by the highest of inflation, average UK wage rises or 2.5%.
According to the BBC, based on the average wage rise over the year, pensioners will get a further £400 a year taking the amount for men who were born after 1951 and women born after 1953 to around £12,000 next year. That follows a £900 increase last year.
Adjusting for the government's new policy of scrapping the winter fuel allowance for pensioners, the BBC calculates will mean a net increase of between £100-200 in the basic pension once that is taken into account.
Chancellor Rachel Reeves has reiterated the triple lock will remain in place at least until the end of this parliament.
A report today suggested that even with the triple lock, pensioners' incomes have failed to keep up with the cost of living.
Left-wing think tank The Resolution Foundation estimates the average pension pot required for a basic standard of living has jumped to £107,800 in 2023-24 from £68,300 in 2020-21.
That is based on an estimated annual income of £19,300, which is what the Foundation says is the minimum need for an elderly person to achieve a basic standard of living, though it acknowledges that an individual’s circumstances can vary greatly.
The Pensions and Lifetime Savings Association meanwhile has calculated that an income of £14,400 is the now minimum threshold for a single person, with £31,300 the level for a moderate lifestyle while £43,100 equates to a comfortable retirement.
The state pension costs £130bn a year.