Pensioners are set to receive more money in their pocket from next month when pensions rise.

Experts have highlighted the significant upcoming increase from the Department for Work and Pensions (DWP) in a move that is set to benefit nearly three million people.

People will see their pension payments rise by £70 a month for the duration of the 2024/25 financial year.

This is the advice of experts at pension firm Spencer Churchill: “The impending rise in DWP payments by £69.40 for nearly three million people not only signifies a crucial step towards financial stability but also reflects the impact of the government's obligation to adjust pensions in line with average earnings.

"This latest increase in State Pension payments once again demonstrates the effectiveness of the triple lock system. By ensuring pensions rise with the highest of average earnings growth, inflation, or a set percentage, the government provides a safeguard against the diminishing value of money, thus protecting pensioners against economic fluctuations.

“The upcoming adjustment in the New State Pension, increasing payments from £203.85 to £221.20 per week, equates to an additional £69.40 every four weeks for pensioners. This increment, reflective of the government's triple lock commitment, ensures that pension values do not fall behind the cost of living, benchmarking increases against the highest of average earnings growth, CPI inflation, or 2.5%.

“This has proven to be a significant driver in enhancing pensioners' income security, with the basic State Pension now almost £800 higher annually than it would have been by following standard earnings or inflation rates since 2011/12. This strategic approach underscores the government's dedication to providing substantial support to the elderly, ensuring that pension increases are not only consistent but meaningful in relation to overall economic conditions."

Pensioners set for £900 increase

Pensioners will see their state pension increase by up to £900 next month, as an announcement made at last year’s autumn statement comes into effect.

Chancellor Jeremy Hunt confirmed that the triple lock on pensions would be honoured, with state pensions set to rise from April 1.

Under the triple lock – which guarantees an increase in line with average earnings, inflation or 2.5%, whichever is highest - pensions will increase by 8.5 per cent next month.

He told MPs: "The triple lock has helped lift 250,000 older people out of poverty since its inception in 2011.

"It has been a lifeline for many during times of inflation.

"We honour our commitment to the triple lock in full. We will increase the new state pension by 8.5 per cent, worth up to £900 more a year."