Pension payments could rise by more than £400 a year from April, reports have suggested.
According to the reports, the Treasury’s internal working calculations would see the pension payments boosted as a result of the triple lock.
Under the triple lock – which guarantees an increase in line with average earnings, inflation or 2.5%, whichever is highest – pensioners would have been in line for a rise linked to wages from April.
The BBC reports that changes would take the full state pension to around £12,000 in 2025/26, after the £900 increase in 2023.
Pre-2016 retirees who may be eligible for the secondary state pension could see a £300 per year increase.
The new state pension system was introduced in 2016 to provide a sustainable, clear foundation pension for people to build their private savings.
Any decision on a pension increase will be made by Secretary of State Liz Kendall ahead of October’s budget.
Chancellor Rachel Reeves on Monday reaffirmed the Government’s backing of the triple lock until the end of this Parliament.
The report comes amid backlash over the Government’s decision to ditch the winter fuel allowance for the majority of households.
Analysis released last week revealed only around half of people receiving the new state pension last year were getting the full weekly amount – and around 150,000 were on less than £100 per week.
Royal London said that 1,737,342 of 3,407,567 people receiving the new pension received the full weekly amount last year.
It made the calculations using Department for Work and Pensions data from spring 2023.
The full state pension for 2024/25 is £221.20 a week, up from £203.85 last year.
The Treasury has been contacted for comment.
Winter Fuel Payments scrapped for millions
Only those on Pension Credit or means-tested benefits will get the Winter Fuel Payment going forward - those on the credit will get £200 and £300 if someone is over 80.
The benefit was previously available to almost everyone in the UK born before September 25, 1957 to help cover their heating costs.
However, from this winter only those on Pension Credit or means-tested benefits will get the Winter Fuel Payment.
The Treasury said the changes would see the number of pensioners receiving the payments fall from 11.4 million to 1.5 million – so just under 10 million would miss out.
They added that about £1.5 billion will be saved per year by targeting winter fuel payments.
The announcement, made by Chancellor Rachel Reeves over the summer, drew criticism from a number of commentators.
Among them was Money Saving Expert Martin Lewis.
He took to X, formerly known as Twitter, to say: "The Energy Price Cap is likely to rise 10% this October and stay high across the winter, leaving most energy bills nearly double that pre-crisis, at levels unaffordable for millions.
"Many pensioners eke out the £100 to £300 Winter Fuel Payments to allow them to keep some heating on through the cold months. While there's an argument for ending its universality due to tight national finances, it's being squeezed to too narrow a group – just those on benefits and Pension Credit.
"Yet again, those just above the thresholds will be hardest hit. This is often justified as there's a 'lack of household income data' to allow other targeting. However, there's a usable precedent from the emergency energy crisis measures announced in April 2022, which I'd urge the Government to look at. Then, a payment was made to homes in council tax bands A to D – as an imperfect but workable proxy for lower household incomes.
"That'd allow an additional group of lower to middle-income pensioners to keep the payments and mitigate bill shocks. Councils' discretionary funds could also be funded as in April 2022, for the limited numbers who still need help but don't qualify.
"Plus, with this announcement, the Government has a huge moral imperative to ensure the 800,000 people eligible for Pension Credit who don't get it, are informed, educated and helped through the process.
"It is planning an awareness-raising campaign, but it needs to ensure that reaches every corner – and if possible proactively and personally contact people.
"Pension Credit is a crucial gateway benefit, giving access to a host of other entitlements, and now with the link to the Winter Fuel Payment, it makes it even more important to ensure fewer miss out."
