State Pension to Jump 3.9% in April 2027, But Most Recipients Will Pay Taxes

UK state pension to rise 3.9% next April, but most will face taxes due to frozen allowance.

September 15, 2026 One Min Read

POLICY WIRE — London, United Kingdom — The UK state pension is expected to increase by 3.9% in April 2027, according to new data released by the Office for National Statistics (ONS) on Tuesday.

The projected rise comes as average weekly wages grew by 3.9% between May and July, triggering the triple lock mechanism that ensures annual increases based on either wage growth, inflation, or a minimum of 2.5%. This would bring the full state pension to just over £13,000 per year.

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However, the majority of recipients may still face higher tax bills, as the government has kept the personal allowance for tax-free income at £12,570, which could mean many pensioners will pay more in taxes despite the increase.

Reporting by Policy-Wire (PW)

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