Pensioners boosted by promise to re-instate triple lock
Share
Pensioners are in line for a £733 boost to the state pension next year, after the Government promised to reinstate the state pension “triple lock”.
Ministers denied millions of pensioners a record £822 increase in the state pension this year due to its controversial decision to suspend it this April. The triple lock dictates how much the state pension rises by each year – the highest of inflation, wage growth or 2.5%.
It will rise by just 3.1% this year, September’s figure for inflation, rather than wage growth, which was 8.1%. The Government said that a jump in wage growth caused by furlough and redundancies during the pandemic made the manifesto pledge to keep the triple lock unaffordable at a difficult time for public finances.
The increase will fall far short of inflation, which is expected to be above 8pc by the end of the year. This will leave pensioners £458 worse off in real terms. The Government will save £10bn in benefit spending in the 2022-23 tax year by curbing the uprating.
This comes as a further blow for pensioners who are among the most vulnerable to rising energy prices and have little protection as the cost-of-living crisis bites. Inflation is forecast to hit 7.6% in September, according to Goldman Sachs. A 7.6% increase in the state pension next year would boost the new state pension by £14.10 per week to £199.25 in April 2023. This equates to an extra £733 a year. The current full state pension is £179.60 a week.
Articles on this website are offered only for general information and educational purposes. They are not offered as, and do not constitute, financial advice. You should not act or rely on any information contained in this website without first seeking advice from a professional.
Past performance is not a guide to future performance and may not be repeated. Capital is at risk; investments and the income from them can fall as well as rise and investors may not get back the amounts originally invested.
You are now departing from the regulatory site of Finura. Finura is not responsible for the accuracy of the information contained within the linked site.
Sources: Techlink
Share
Other News
PETs vs CLTs: What You Should Know About Lifetime Gifts And Inheritance Tax
When it comes to passing on wealth efficiently, lifetime gifting can be one of the most effective tools in your estate planning strategy. But not all gifts are treated equally — and for high-net-worth (HNW) families, understanding the distinction between PETs and CLTs can mean the difference between zero tax and an immediate 20% charge.
Good Taste Or Good Value? A Financial Planner’s Guide To Expensive Wine
Times Money Mentor recently posed the perennial dinner-party question: is a steeply-priced bottle really worth it? Their answer, in short, is “sometimes – but not for the reasons you may think.”
Saving For Your Children: A Guide For Women Building Financial Futures
In today’s modern world, women juggle an increasing number of roles, from being a parent, caregivers, building a career and supporting their partners, all the while thinking ahead to the kind of future they want for their children. One of the most powerful gifts we can give them is a sense of financial security and the freedom to pursue their dreams.