Pensioners will receive a 2.5% rise in their pensions in the next financial year, the Department for Work and Pensions (DWP) has confirmed.

From next April,  pension payments will increase from £155.65 to £159.55. Those on the old state pension will get a rise to £122.30 from £119.30.

It means the UK Government has kept its triple lock promise for a continuous rise in state pension payments.

The pledge means pensions rise by whatever is highest: inflation, average wage growth or 2.5%.

The Office for Budget Responsibility forecast inflation rising to 2.3% next year.

In his Autumn Statement earlier this month, Chancellor Phillip Hammond said the government will continue to push up pension rates annually until 2020 through the triple lock.

Hammond warned it may not continue beyond that date, however, as the government will need to examine the "challenges of rising longevity and fiscal sustainability" of the triple lock.

The announcement comes on the day of research published by the Pensions Policy Institute (PPI) on the future of the funding formula.

It forecast the cost of providing pensions rising from 5.3% of GDP this year to 7.2% by 2046 if the triple lock is retained.

Daniela Silcock, head of policy research at the PPI said: "Looking forward, both the 'triple lock' and automatic enrolment could significantly increase the level of people's retirement incomes.

"For those nearest state pension age the triple lock has the most immediate effect whereas younger individuals may gain most from automatic enrolment."

All men and women born after April 6, 1978, will qualify for a state pension on their 68th birthday.