State Pensions are due to rise by 7.8% from next April to match the growth in average earnings announced this morning by the Office for National Statistics (ONS). The Government have previously confirmed their commitment to the triple lock for uprating State Pensions, for the remainder of this Parliament, after suspending it two years ago causing a shortfall for pensioners relative to earnings growth.
The triple lock provides a safeguard to pensioners to ensure that the State Pension rises by the higher of: average earnings (May to July) ; CPI inflation (at September) or 2.5%. Currently inflation as measured by inflation is at 6.8% year on year to August.
CSPA Deputy General Secretary, David Luxton said today: ” State Pensions in the UK are among the lowest in most industrialised countries, and represent just a quarter of average earnings. The triple lock is an essential safeguard for pensioners coping with the cost of living crisis and a sharp drop in income after retirement. More than 7 million pensioners have total income less than the basic tax threshold of £12,580 a year.”
The basic State Pension for those retired before April 2016 is currently £156.20 a week (£8,122 per annum); and the new State Pension after April 2016 is currently £203.85 a week £10,600 a year). A 7.8% increase from April 2024 will mean a weekly increase of £12.18p in the basic State Pension ; and a £15.90 weekly rise in the higher new State Pension.
The Chancellor is due to confirm the State Pension increase in his Autumn Budget statement on 22 November.
