The state pension is set to rise by 4.1 per cent in April giving pensioners a boost for the next year.
Since 2011, the state pension has been legislated to rise each year based on the triple lock.
This is a promise from the Government that pensions will rise in line with average earnings, the cost of living or 2.5 per cent – whichever is highest.
The 4.1 per cent rise will see the basic state pension climb to £176.45 per week, while those on the new state pension will receive £230.25 weekly.
The increase is part of a broader £6.9bn spending boost for state pensions and benefits, approved in Parliament.
The Department for Work and Pensions (DWP) has confirmed the changes will start from April 1.
Around 12.9 million people currently receive state pension payments across the UK
GETTYAround 12.9 million people currently receive state pension payments across the UK, with 8.8 million on the basic state pension and 4.1 million on the new state pension.
The annual payment for those on the new state pension will increase by £473.60, rising from £11,502 to £11,973.
For basic state pension recipients, the yearly amount will rise by £361.40, from £8,814 to £9,175.40.
LATEST DEVELOPMENTS:
Monthly payments for those receiving the full new state pension will increase by £36.20, from £884.80 to £921.
Basic state pension recipients will see their monthly payments rise by £27.80, from £678 to £705.80.
Not everyone receives the full amount of the new state pension, as payments are linked to National Insurance contributions.
A recent Royal London study found around 150,000 people get less than £100 weekly.
The 4.1 per cent pension increase significantly outpaces the rise in other social security benefits, which will increase by just 1.7 per cent from April.
Sir Stephen Timms told the Commons: "The Government's commitment to the triple lock means that the basic and full rate of the new state pension will be uprated by the highest of the growth in earnings or prices or 2.5 per cent."
The Government remains "fully committed to maintaining the pensions triple lock."
Pensioners will be notified about the payment changes through a letter from the DWP in March. The letter will also encourage older people to check their eligibility for Pension Credit.
The Government remains "fully committed to maintaining the pensions triple lock
GettyConservative MP Luke Evans questioned whether the government would adopt a 'triple lock plus' policy, which was proposed during the last general election.
However, Timms responded: "We don't have any plans to do what he suggests."
People whose only income is the State Pension will not be required to pay income tax, with the Personal Allowance remaining at £12,570 for the financial year.
