Pensioners could see a £700 rise in the financial support they receive, but there's a catch

As the Bank of England predicts a slight dip in inflation to 7% by September, the new state pension could rise by more than £700 next year under the triple-lock mechanism, a government commitment to up-rate the basic and new state pension by the highest figure out of earnings, prices or 2.5%.

But who will get the increase depends on where you live.

Here are the categories of pensioners that won't be eligible for the recalculated amount.

Meanwhile, DWP is handing out a 'special payment' after a historical mistake. Apart from that, they will also be paying out a 'bonus' to those on benefits around Christmas.

Also, did you know that suffering from this common conditioncould qualify you for £441 per month in extra support?

The state pension is likely to see a further increase

The state pension in Britain increased by 10.1% in April this year via the triple-lock mechanism.

People are likely to see it grow further next year.

But there is a catch.

Pensioners living in certain countries can’t benefit from the triple-lock protection.

To get the increase, they have to be living in Britain, the European Economic Area, Gibraltar, Switzerland, or a country that has a social security agreement with the UK.

Data shows that an estimated 520,000 pensioners live in places that don’t have such deal.

Unless they return to live in the UK, those living overseas without triple-lock pension protection cannot get the yearly increases.

A Government spokesperson said:

The Government’s policy on the uprating of the UK state pension for recipients living overseas is a longstanding one of more than 70 years and we continue to uprate state pensions overseas where there is a legal requirement to do so.

Read more:

⋙ Thousands of pensioners warned they've been overtaxed, here's how to get your money back

⋙ Thousands to get £6550 back from government due to underpayment errors, check if you're eligible

Here is how much the state pension will increase

According to the Bank of England, inflation is likely to drop slightly from 8.7% to 7% by September.

If the forecast is correct, the new state pension would increase by £742 to £11,342 in April 2024.

The basic state pension would then rise by £569 to £8,691.

Alice Guy, head of pensions and savings at interactive investor, said:

Pensioners could be due another bumper state pension hike next year, with inflation proving a much tougher nut to crack than the Bank of England hoped.

According to Guy, there is a common misconception that all pensioners are wealthy while in reality many of them rely on the state pension ‘as their main source of income’ so the increase will be ‘a lifeline to many people on the breadline’.

Read more:

⋙ DWP issues warning over text messages for £750 cost of living payment: 'This might be a scam'

⋙ DWP handing out 'special payments' after mistake, check if you're eligible

Sources used:

-GB News: 'State pension could rise by £742 but 500,000 pensioners will miss out'