Exact amount state pension set to rise by in 2022 as 'crucial number' confirmed

The Office for National Statistics has announced that wages grew by 4.1% between May and July - which is the crucial number that will be used to determine how much the state pension will rise by next April

The state pension is set to increase by £470 next April, following the confirmation of a "crucial number" used to determine the triple lock this morning. The triple lock ensures that the state pension increases each April by the highest of three factors: inflation (using the previous September's inflation figure), wage growth (average growth between May and July), or 2.5%.

Last month, the provisional estimate for wage growth was 4%, but today, the Office for National Statistics (ONS) revised this figure to 4.1%. As this is higher than the current inflation rate of 2.2%, which is expected to drop in September, it suggests that wage growth will likely be the method used to determine the rise in state pensions.

Chancellor Rachel Reeves will confirm the exact figure in her Autumn Budget next month. Former pensions minister Sir Steve Webb, now a partner at LCP, said this additional 0.1% adds approximately £100 million to the state pension bill under the triple lock formula.

He stated: "A slightly higher rate of increase is welcome for pensioners, though will be an unwelcome £100million extra cost for the Chancellor as she prepares her Budget. The rate of the new state pension will now be close to £12,000 per year, very near to the £12,570 tax-free personal allowance. This is likely to put extra pressure on the Chancellor to take action on tax allowances in the coming years."

There are two types of state pension, and the one you claim depends on your date of birth. Men born on or after April 6, 1951, or women born on or after April 6, 1953, will claim the new state pension, reports the Mirror.

The full new state pension is currently £221.20 a week, or £11,502 a year, but this would rise to £230.30 a week, or £11,975 a year, under a 4.1% increase. If you're a man born before April 6, 1951, or a woman born before April 6, 1953, you claim the older basic state pension.

The full basic state pension is worth £169.50 a week, or £8,814 a year, but this would rise to £176.45 a week, or £9,175 a year, under a 4.1% increase. However, many pensioners may face paying more tax next year as the full new state pension edges closer to the current £12,570 tax-free personal allowance.

The exact amount you get for your state pension depends on your National Insurance record. For the new state pension, most people need 35 qualifying years on their National Insurance record to get the full amount.

You normally need ten years to get anything at all.