The state pension is likely to rise by 4.7% in April, after the latest official figures showed this was the pace of wage growth.
The pension is determined by the triple lock, which means it will rise every year by whichever is highest: inflation in September, average weekly earnings from May to July or 2.5%.
Inflation in September is expected to be 4% by the Bank of England, meaning wage data, released by the Office for National Statistics (ONS) on Tuesday, is set to be the highest figure.
Government retains control of pension increases and, despite commitments, could decide not to abide by the triple lock.
The new pension sum will start being paid in April, and if increased by 4.7% would reach £12,534.60, above £12,000 for the first time.
While the average weekly earnings measure of wage growth rose, up from 4.5% a month earlier, another form slowed. Earnings excluding bonuses dropped from 5% to 4.8% across the month.
It means pay is still rising faster than inflation, which was 3.8% at the latest reading, and wage growth is high by historical standards.
The data was not so positive for those looking for a job. There are fewer vacant roles and fewer people on payrolls, the ONS said.
Compared to a year earlier, there were 142,000 fewer payrolled employees in July.
The unemployment rate, however, remained at 4.7%.
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Content Source: news.sky.com