State pensioners may get ‘bumper increase’ – but only from next year

Jonathan Ashworth calls for return of pension triple lock

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

Pensioners may have to wait for their sum to increase in the way they had hoped this year. It was originally thought the state pension would rise by eight percent this year, in line with average earnings.

However, ministers deemed this increase as unaffordable, and therefore shelved the traditional triple lock policy this year.

The move is temporary, with the triple lock set to return for next year.

This did not stop pensioners from feeling disappointed, or calling for the Government to reconsider.

It was especially the case given the rising cost of living and inflation which has all but obliterated the spending power of pensioners.

Hope may be on the horizon for older Britons with the triple lock’s return potentially set to deliver the highest increase in the state pension sum yet. 

Inflation is set to hit double digits at its peak later in the year.

Depending on whether this coincides with September 2022, it could mean pensioners are able to secure substantial increases.

Inflation as recorded in September is one of the key measures usually used for the triple lock mechanism.

State pension alert as some may get ‘higher’ sum than full new amount [INSIGHT]
State pension gap narrows but women still need to take action [ANALYSIS]
Mum-of-two on Universal Credit ‘can’t live’ as bills soar [UPDATE]

It was the measure by which the state pension was increased this year – at 3.1 percent.

This was due to the fact the earnings element of the mechanism was suspended due to warped data.

Steven Cameron, Pensions Director at Aegon, said: “Many pensioners were left disappointed when the Government broke this manifesto commitment and temporarily replaced the triple lock with a less generous ‘double lock’, meaning the state pension rose by 3.1 percent this April.

“But the calculation of the increase from April 2023 will use inflation till September 2022.

“The triple lock will pay this, or even more if earnings growth is higher again. 

“Without the Government doing any further tinkering, this could put state pensioners on target for a bumper increase in 2023, potentially the highest increase ever, compensating for the relatively low increase this April.”

Mr Cameron recently added the increase would only be possible after Britons get through a “long, cold winter” and financial challenges this year.

He continued: “It is still unclear whether the Chancellor will provide temporary or targeted support for those in greatest need.

What is happening where you live? Find out by adding your postcode or visit InYourArea

“In the meantime many individuals will be looking to cut back on ‘discretionary’ purchases where they can.”

Prices are now rising at their fastest rate for 40 years, leaving many fearful about their finances.

UK inflation rose to nine percent in the 12 months from April, creating a surge.

This has been coupled with rapidly swelling energy bills, leaving pockets stretched. 

Source: Read Full Article