Expert on how to get the most from your state pension
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State pensioners are reckoning with a lower than expected rise of 3.1 percent to their sum this year. This is due to the temporary abandonment of the triple lock which was deemed unaffordable due to warped earnings data.
A warning has been issued that pensioners will now miss out as a result of the decision.
Analysis from the Labour Party suggests state pensioners are now facing the “biggest real-terms cut in half a century”.
It has been suggested the decision to pause the triple lock combined with rising inflation means pensioners will take a £427 hit this year.
The state pension will only go up by 3.1 percent after the earnings component of the triple lock was scrapped.
However, inflation has risen to 6.2 percent and is expected to increase even further.
Consequently, Labour calculates that the £9,648 state pension will be worth £427 less in real terms.
The matter was highlighted by Shadow Work and Pensions Secretary, Jonathan Ashworth during an interview with BBC presenter Sophie Raworth.
Appearing on Sunday Morning, Mr Ashworth told Ms Raworth: “You say lower than inflation, that’s actually a real-terms cut.
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“It actually translates to the biggest cut in the pension for 50 years.”
Recently, the Trades Union Congress (TUC) called upon the Government to reverse its decision to suspend the triple lock.
Frances O’Grady, TUC General Secretary, said: “The UK has one of the least generous state pensions in the developed world.
“The triple lock was introduced to close this gap and lift pensioners out of poverty.
“Abandoning it in the middle of a cost-of-living crisis will leave thousands of pensioners struggling to keep their heads above water.”
Ms O’Grady said the Spring Statement served as a “last chance” for the Government to U-Turn on the triple lock.
However, the opportunity appeared missed as the statement did not directly reference pensioners.
Despite this, Mr Sunak told the Commons the Government would “always support” older Britons.
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The full basic state pension will rise this year from £137.60 to £141.85 per week.
The full rate of the new state pension will also increase from £179.60 to £185.15 weekly.
A DWP spokesperson recently told Express.co.uk: “We recognise the pressures people are facing with the cost of living, which is why we’re providing support worth £21billion this financial year and next to help.
“This includes supporting over 11 million pensioners with their energy bills through our Winter Fuel Payments, freezing fuel duties to keep costs down and helping households through our £9.1billion Energy Bills Rebate.
“From April, the full yearly amount of the basic state pension will be over £2,300 higher than in 2010 and we continue to encourage those eligible for Pension Credit, and the wide range of other benefits it can provide, to make a claim.”
The DWP has been contacted for further comment.
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