State pension triple lock freeze may mean Britons miss out on nearly £500 per year

Pensions triple lock scrapped for millions of Brits

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The state pension triple lock usually ensures the sum rises each year in real terms. It is measured by whichever is the highest: 2.5 percent, inflation or average earnings.

However, the earnings component has been temporarily scrapped this year due to warped data.

It was feared the measure would create unaffordable increases, and therefore it has been abandoned for a one-year period.

While the triple lock is set to return next year, campaigners have warned about the effects for pensioners in the meantim

The Trades Union Congress (TUC) has said the 3.1 percent increase in April compared to the eight percent previously predicted could cost someone on a new full state pension £487 per year.

Indeed, the TUC states someone on the full basic state pension will miss out by approximately £373 per year.

The body has now called upon the Government to reverse its decision to suspend the triple lock mechanism.

Frances O’Grady, the 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. 

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“With households across Britain pushed to the brink by skyrocketing bills, this is the worst time for the Government to be cutting pensioners’ incomes. 

“Reversing the decision to suspend the triple lock is one step it must take.

“The Chancellor’s spring statement is the Government’s last chance to reverse its broken promise on the triple lock.” 

The TUC has also called upon the Government to introduce a windfall tax on energy companies.

The levy, it asserts, could be used to provide energy grants to help vulnerable households.

Furthermore, the body argues a rapid rollout of home insulation should be delivered by the public sector.

This would be particularly targeted at lower income households. 

A DWP spokesperson told “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.

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“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.

“The one-year move to temporarily suspend the triple lock ensures fairness for both pensioners and taxpayers. 

“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.”

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