The state pension is set to rise just £4.40 a week next year, in the smallest rise allowed by legislation. The increase means the ‘new’ basic state pension is set to rise from £175.20 to £179.60 a week – representing £228.80 a year. The ‘old’ basic-rate state pension will rise by £3.40 a week from £134.25 to £137.65. The rise – representing 2.5% – will be confirmed later by the government but is all but certain after inflation figures for September came in at just 0.5%. Under current rules, pensions rise every year by the highest of prices, earnings or by 2.5%. With earnings hammered by coronavirus and prices creeping up just 0.5%, that means the 2.5% figure will be used to set pension in 2021. With Covid-19 hammering wages and pushing inflation to almost 0%, the value of the state pension triple-lock has never been clearer.