BBC Breakfast reveals pension boost after surprise wage growth figures

BBC Breakfast presenter Sally Nugent cut into Tuesday morning’s program with breaking news that could mean a big change for pensioners. Sitting alongside co-host Jon Kay, she told viewers that “new figures for the average wage growth” had just landed and explained this would “likely impact the state pension,” the Express reports.

She then handed over to Emma Vardy, who broke down the numbers and what they mean for millions across the UK. “In the last few minutes, the Office for National Statistics has released that figure for how much average annual earnings have risen over the past year. It shows the average wage has increased by 4.7%, slightly higher than forecast,” she said.

Emma explained why the figure is so important. “One of the reasons, as Sally mentioned, that we pay attention to this figure, it gives us an idea of how much many people’s pensions are likely to increase by next year. And that is because anyone living in the UK who gets the full new state pension will see it go up each year, either by the same amount as wages go up, or by inflation, or by 2.5%, whichever is the highest.”

She clarified that this is known as “the triple lock.” Right now, wage growth is higher than inflation, which means pensions will be tied to that rise. “So figures in reality, well, it means we’re probably looking at pensions going up by over £500 in the spring, bringing it to around £12,000 a year. So people who rely on that full new state pension can now have some idea how much their money will increase by.”

Emma, who joined the BBC Breakfast presenting team in 2023, went on to explain that official confirmation usually comes with the budget announcement in November. “But it does give us a pretty good idea,” she concluded.

For pensioners already grappling with the cost of living, this news offers a glimmer of relief. The 4.7% wage growth figure, though only slightly above forecasts, has set the stage for a significant uplift in state pensions that could ease financial pressures next year.