State pension rise of £869 set for 2023 for millions

Under the triple lock, the state pension is uprated in April by inflation, wages or 2.5%, depending on which is higher.

Wage growth is currently the highest of the three metrics, reaching 7.8% in June compared with the same period 12 months earlier.

The Prime Minister said the Government is “committed to its policy on the triple lock”.

State pensions could rise by £869 next year (Image: Getty/Jovan Geber)

If current rates continue, state pensions would increase by £869 next year.

The triple lock is based on average earnings growth measured from May to July each year, meaning it is likely to be figures published next month that could dictate the state pension rise in spring 2024, as long as it is higher than the inflation figure in September.

Asked by ITV News during a visit to Leicester on Wednesday whether he was uncomfortable with potentially uprating the state pension by almost 8%, Mr Sunak said: “No, I think the most important thing is that we continue to bring inflation down more generally.

“But while inflation is higher than we would like, I also believe it is right to step in and help people with the pressures that it brings.”

Listing financial support given to the public, including assistance with energy bills and cost-of-living relief payments, the Conservative Party leader said it was “right” that the Government helped the “most vulnerable through a tough time” while tackling inflation.

Mr Sunak has made halving inflation by the end of the year one of his top five priorities ahead of a likely general election in 2024.

He committed to bringing down Consumer Prices Index (CPI) inflation to around 5.3% by the end of the year.

On Wednesday, the Office for National Statistics (ONS) said CPI was 6.8% in July, down from 7.9% in June.

But rising wages could lead to a jump in inflation as a result of increased spending.