State pensions could rise by 7% to £11,342 in 2024, paving the way for close to an 18% jump in two years, according to Bank of England inflation forecasts.

Under the triple lock scheme, state pensions are required to increase annually at the same rate of whichever is highest out of the inflation rate in September, earnings between May and June or 2.5%.

Predictions made by the Bank of England show inflation dropping from 8.7% to 7% in September, the month when state pension rises are locked in.

If this is the case, it means pensions will have increased by 17.8% in the two years between 2022 and 2024.

This represents a larger increase than employee wages, which rose on average by 6.5% in the year to April 2023.

Alice Guy, head of pensions at interactive investor welcomed the prospective increase.

She said: “The state pension forms the backbone of most people’s pension income and a rise in the state pension will be a lifeline to many people on the breadline.

“There’s a myth that all pensioners are wealthy but this simply isn’t the case with many pensioners relying on the state pension as their main source of income.”

Guy noted pensioners from before 2016 were still receiving the basic state pensions which amounted to a little over £8,000 per year.

“Many poorer pensioners are facing real hardship as they spend a big proportion of their household income on increasingly expensive necessities like food and energy,” she concluded.

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