The state pension is on course to rise above £13,000 a year for the first time next April, potentially pushing millions of pensioners into the income tax system.
Official figures showed total pay, including bonuses, increased by 3.9% in the three months to July, meaning the triple lock is expected to deliver at least the same increase in the state pension.
Pensions consultancy LCP estimates this would take payments to £250.70 a week, an increase of almost £500 a year.
Former pensions minister Steve Webb told The Telegraph: “Those on the new state pension can expect to see an increase of nearly £500 per year next April. But the sting in the tail is that this will take the standard rate of the new state pension above the tax threshold.”
The increase will add further pressure to Chancellor John Healey’s public finances ahead of next month’s Budget. Pensioners could receive an even larger rise if September’s inflation figure exceeds 3.9%, although this is considered unlikely.