State pension set to rise by 3.9% after wage growth data
The UK state pension is set to rise by 3.9% next year, it appears, following today’s wage growth figures.
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it → set → figures
Under the triple-lock system, pensions rise by the highest of average earnings, inflation, or 2.5%.
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pensions → rise → earnings
So today’s data showing that total pay rose by 3.9% over the last year is likely to be the figure used to set the pension increase (unless we get a surge of inflation in September’s data to 4% or higher).
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we → show → %
Assuming, of course, that the government continue to stick with the triple-lock – as there are calls to suspend it.
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government → assume → it
Jon Greer, head of retirement policy at Quilter, says:
“Today’s earnings figures show wage growth running at 3.9%, which puts a State Pension increase of a similar magnitude firmly on the cards next April under the triple lock.
“
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which → say → lock
If confirmed, this would see the full New State Pension rise to over £13,000.
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this → confirm → 13,000
While we will need to wait for September’s inflation figure before the uprating mechanism is formally confirmed, inflation is currently expected to remain below earnings growth, making an earnings-led increase the most likely outcome.
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increase → need → growth
“For pensioners, another above-inflation increase will be welcome news and reflects the success of the triple lock in strengthening the value of the State Pension over time.
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increase → reflect → time
The State Pension remains a crucial source of retirement income for millions of people and continues to provide the foundation upon which many build the rest of their retirement plans.
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many → remain → plans
Wage growth in the UK has slowed as workers come under pressure from a renewed cost of living squeeze fuelled by the Iran war, highlighting the challenge for the Bank of England as it prepares to set interest rates.
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it → slow → rates
Data from the Office for National Statistics (ONS) shows average growth in total earnings, including bonuses, eased to 3.9% in the three months to July, down from 4.1% in the three months to June, matching the forecasts of City economists.
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growth → show → economists
The figure is expected to dictate the rise in the new state pension this year under the triple lock, where the benefit rises by either 2.5%, inflation, or average wage growth, whichever is highest, each year.
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whichever → expect → %
If the 3.9% number is used, that would push the annual new state pension up by £488 from April to more than £13,000 a year.
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that → use → 13,000
Reflecting a cooling jobs market, the ONS said the number of workers on company payrolls continued to edge down, driven by a decline in jobs in the retail and hospitality sectors.
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number → reflect → sectors
Job vacancies in the three months to August fell to 702,000 from 706,000 in the previous month.
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vacancies → fall → month
Liz McKeown, the ONS director of economic statistics, said:
“Vacancies remain at their lowest level outside the pandemic period for more than a decade, with smaller businesses continuing to report that increased labour costs are affecting hiring decisions.”
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costs → say → decisions
Old State Pension likely to rise to near £10,000/year
It is too simplistic to state that the ‘state pension’ will go up to £13,000 next year.
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pension → rise → 13,000
As a reader politely reminds me, that figure refers to the New State Pension, which is currently £241.30 a week, and now expected to rise by 3.9% next year to around £250.70.
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which → remind → 250.70
To claim the New State Pension, you have to be a man born on or after 6 April 1951, or a woman born on or after 6 April 1953.
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you → claim → April
Payments depend on your National Insurance record.
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Payments → depend → record
But if you reached State Pension age before 6 April 2016, you should qualify for the basic State Pension (if you have sufficient qualifying years of National Insurance).
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you → reach → Insurance
A 3.9% increase would lift it to £9,990 a year.
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increase → lift → 9,990
Back in 2024, three-quarters of pensioners were on the old basic state pension, as we covered here:
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we → cover → pension
The BGC Charity Day, created in memory of the victims of 9/11, has now raised a total of $250m though its annual fundraiser.
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Day → create → fundraiser
Last Friday, the trading firm raised a record $16m for good causes - by inviting celebrities onto trading floors around the world to raise money for their chosen charities.
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firm → raise → charities
This year’s celebs at its London offices included DameHelenMirren, TomHardy, HughGrant, Little Mix’s Leigh-Anne Pinnock, MichaelMcIntyre, MaroItoje, Sir Gareth Southgate and Youtuber, KSI.
BGC set the day up after 658 of its staff, and 61 Eurobrokers employees, were killed in the terrorism attack in 2001 – at that time the company was part of Cantor Fitzgerald, which occupied four floors in the North Tower of the World Trade Center.
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which → include → Center
It donates all its global revenue from the day to the Cantor Fitzgerald Relief Fund, and the charities supported by celebrities who manage to land some financial trades.
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who → donate → trades
Sean Windeatt, Co-CEO and COO of BGC Group, says:
“I am thrilled that this year’s BGC Charity Day raised a record $16 million, taking the total raised since the day began in 2005 past $250 million.
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day → say → million
Every year it gets bigger and better, all in memory of the 658 colleagues we lost on 9/11, 25 years ago this year.
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we → get → 9/11
The day has grown into one of the world’s most significant fundraising events and an incredible legacy in their honour.
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day → grow → honour
Windeatt also points out that corporate giving is generally declining:
“This year’s Charities Aid Foundation research shows that only 27% of UK businesses support charities in any way, at a time when public giving is falling.
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giving → point → time
I know these are challenging times for many businesses.
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these → know → businesses
But the challenges are far greater for charities: when household budgets are squeezed, giving is one of the first things to go.
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giving → squeeze → things
I hope Charity Day shows other businesses what’s possible when a company decides to give, and encourages more of them to find their own way to step up, especially when the benefits, from employee retention to how customers see you, are so clear.
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customers → hope → you
That doesn’t have to mean simply writing a cheque.
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That → have → cheque
Petrol and diesel prices are continuing to rise across the UK.
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prices → continue → UK
The RAC reports that average pump prices have jumped by yet another penny in just a day, to the highest levels in four years.
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prices → report → years
RAC head of policy SimonWilliams explains:
Petrol has now broken through the £1.70-a-litre barrier and stands at 170.54p – its highest since 23 August 2022 – and diesel has risen to 192.86p – its highest since 29 July 2022.
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diesel → explain → July
Unfortunately for hard-pressed drivers, prices look set to keep on rising due to the cost of a barrel of oil consistently trading over the $100 mark.
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barrel → press → mark
“Since the start of this month, the cost of filling a family car has already risen by almost £5, to £94 for petrol and £106 for diesel.
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cost → fill → diesel
…and 77 more, not listed.
The Aporia
