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STATE PENSION TRIPLE LOCK TO RETURN IN APRIL - HOW MUCH WILL YOU GET?


STATE PENSION PAYMENTS ARE SET TO RISE SIGNIFICANTLY FROM APRIL IN A BOON FOR
OLDER PEOPLE AMID THE COST OF LIVING CRISIS.

By Patrick O'Donnell
09:24, Wed, Feb 1, 2023 | UPDATED: 17:04, Wed, Feb 1, 2023
15 Link copied


PENSIONS: CURRIE ANALYSES SUNAK'S DECISION TO PROTECT TRIPLE LOCK


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Pensioners are being hit with a double whammy of soaring inflation and energy
bills which is placing a great strain on them financially. With many older
people reliant on their state pension, the return of the triple lock will be
welcome for thousands of households. Retirees will be looking to see how much
they make once this payment rate increase is implemented in April.


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WHAT IS THE STATE PENSION TRIPLE LOCK?

Since 2010, the Government has promised to increase retirement payments by
either inflation, average earnings or 2.5 percent every year.



Whichever is the highest figure for the September before will be used at the
metric for raising payment rates.

Due to wages being artificially inflated during the pandemic, the triple lock
was temporarily suspended last year with pensioners missing out on a larger
payout and only getting 3.1 percent despite inflation skyrocketing in the
meantime.

However, Chancellor Jeremy Hunt confirmed last year the pledge on state pensions
would be reinstated to support older vulnerable households.



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State pension triple lock to return in April - how much will you get? (Image:
GETTY)



How much is the state pension? (Image: EXPRESS.CO.UK)


HOW MUCH WILL THE STATE PENSION RISE BY?

As it stands, the full new state pension is £185.15 per week for claimants and
is accessible to people once they turn 66.

Comparatively, the full basic state pension is to £141.85 per week and can be
claimed by those who turned pension age prior to April 6, 2016.

Taking into account the 10.1 percent rate hike, full new state pension payments
will rise to £203.85 a week.

Furthermore, the basic state pension will increase £156.20 a week come April
with the triple lock’s return.

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Steven Cameron, pensions director at Aegon, broke down the concerns over the
future of the state pension.

He explained: “The Government Actuary’s latest report shows that in each year
from 2024/25 till 2027/28, receipts will be less than expenditure.

“While these latest figures don’t look beyond 2028, unless changes are made, the
state pension looks increasingly unaffordable.

“While there is a very small fund to cover the shortfalls till 2028, it is
declining rapidly and could run out entirely unless the Treasury steps in and
pays special grants.”

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The retirement expert warned unprecedented changes to the rollout of state
pensions could be introduced to address this issue.

Mr Cameron added: “The Government did honour the state pension triple lock this
year, but there is growing concern that granting such generous upratings in
future years will simply be unaffordable, without putting growing pressures on
today’s already stretched workers.

“The Government will shortly publish findings of its review into state pension
age, and there’s a strong likelihood that on affordability grounds, this will
have to increase beyond age 67, earlier than currently planned.

“These latest Government Actuary figures make changes to state pensions even
more likely.”




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WHAT OTHER FINANCIAL SUPPORT IS AVAILABLE FOR PENSIONERS?

Older people can apply for benefits, such as Pension Credit and Attendance
Allowance, from the Department for Work and Pensions (DWP) if they are on low
income or have a disability, respectively. Pension Credit claimants will also be
eligible for the Government’s £900 cost of living payment for those on
means-tested payments.

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Notably, every pensioner household in the country will be entitled to a £300
cost of living payment to help pay with rising bills. The triple lock payment
raise for state pensions will be introduced in April 2023 for recipients.

A DWP spokesperson previously told Express.co.uk: "No decision has been taken on
changes to the state pension age.

"The Government is required by law to regularly review the state pension age and
the second state pension age review is currently considering, based on a wide
range of evidence including latest life expectancy data and two independent
reports, whether the rules around state pension age remain appropriate. The
review will be published in early 2023."


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