Pensioners will see a boost to their payments from next week, as the state pension is set to increase by up to £900 from April 1.

However, experts have warned that the state pension is still not enough for retirees to live on.

Pension payments will increase by 8.5 per cent on Monday.

The increase comes after Chancellor Jeremy Hunt opted to maintain the triple lock – which guarantees an increase in line with average earnings, inflation or 2.5 per cent depending on which is highest – on pensions at last year’s autumn statement.

But pension experts from Spencer Churchill Claims Advice warned the gap between pension payments and the rising cost of living is still increasing.

They said: “The current state of the UK pension system reflects a concerning situation for retirees.

“Despite annual increases, pensioners can barely keep up with the rising cost of living.

“For instance, the average pensioner in Britain faces a £40 monthly shortfall compared to last year, even with yearly pension bumps.

“Currently, the maximum state pension in the UK pays a total of £884.40 per month to retirees, which is just £74.40 more than the average cost of living for a pensioner.

“Although the state pension will soon rise to over £220 a week, it won't stretch far enough due to the higher cost of living.”

Pensioners set for £900 increase

Pensioners will see their state pension increase by up to £900 next month, as an announcement made at last year’s autumn statement comes into effect.

Chancellor Jeremy Hunt confirmed that the triple lock on pensions would be honoured, with state pensions set to rise from April 1.

Under the triple lock – which guarantees an increase in line with average earnings, inflation or 2.5%, whichever is highest - pensions will increase by 8.5 per cent next month.

He told MPs: "The triple lock has helped lift 250,000 older people out of poverty since its inception in 2011.

"It has been a lifeline for many during times of inflation.

"We honour our commitment to the triple lock in full. We will increase the new state pension by 8.5 per cent, worth up to £900 more a year."