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State Pension to Rise

The State Pension is to rise by the greater of 2.5% or the increase in Price Inflation in April 2022.

The secretary of state for Work and Pensions Thérèse Coffey has announced the state pension triple lock will be suspended for one year.

In April 2022 the state pension will rise by the higher of 2.5% or the increase in inflation as measured by the September 2021 Consumer Price Index (CPI) figure. This effectively downgrades the triple lock to a double lock.

This is a departure from the policy adopted by the current Government whereby they had committed in their election manifesto to increase the state pension each year in line with the terms of the ‘triple-lock’ system for the full term of its administration.

Under the triple-lock system introduced in 2011, state pension payments rise by the higher of national average earnings, inflation, or 2.5%.

The Government has backtracked on their triple-lock commitment as the average earnings figure this year is expected to be in the region of 8%.

The increase in the average earnings figure is being skewed by the effect of workers returning to full pay after being paid lower wages whilst on the furlough scheme introduced as a result of the Coronavirus pandemic.

In confirming the one-year change, Ms Coffey said it was to make sure 'pensioners are not unfairly benefitting from a statistical anomaly'.
For more information on the triple lock system and the state pensions in general please go to;

 www.usdaw.org.uk/Help-Advice/Pensions/Puzzled-by-Pensions
 
 

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