Sir Keir Starmer '£1,985 extra' payments for state pensioners before leaving as Prime Minister

Keir Starmer and his Chancellor Rachel Reeves have ensured pensioners will receive hundreds of pounds in extra payments through a key policy kept in place before Starmer leaves his role as Prime Minister. The state pension will continue to climb every year for the rest of the decade under the existing triple lock rules, a policy originally introduced by the Conservatives and extended by the Labour Government.

A new forecast suggests the full state pension paid to everyone who has retired since 2016 could jump by almost £1,900 by the end of this decade. The triple lock policy ensures the pension rises each year in line with whatever is highest out of inflation, wage growth, and 2.5%.

New calculations from experts based on the rate rising by 4.8% each year show the full state pension climbing to £14,442 by 2029-30. That represents £1,895 more than the current rate of £12,547.

A spokesperson said: "The important point is that small annual increases become much bigger over time. A 4.8% rise may not sound dramatic in one year but if it were repeated for a decade it would push the full new state pension above £20,000 a year."

The incoming Prime Minister Andy Burnham, set to take office next week following Starmer's resignation last month, has said he has no plans to change existing triple lock rules. Whatever happens, as long as the policy is kept in place, the pension will continue going up every year by at least 2.5%.

Calls are growing louder for the triple lock to be scrapped because of how much it costs the nation. However, the commitment from both Starmer and his successor Burnham suggests the policy will remain protected, continuing to deliver annual increases to pensioners for years to come.