Ending weeks of speculation about whether or not the so-called ‘triple lock’ protection would be upheld, the Chancellor confirmed that pensions – like benefits – would rise in line with September’s inflation rate of 10.1%.
The triple lock refers to a manifesto pledge that state pensions would rise in line with whichever is highest of the following: the average wage increase, the previous September’s inflation figure, or 2.5%.
Acknowledging that the cost-of-living crisis is hurting all pensioners, Hunt announced that in April 2023, an £870 increase will represent the “biggest ever cash increase in the state pension”. The standard minimum income guarantee in pension credit will also increase in line with inflation from April 2023 (rather than in line with average earnings growth).
From April 2023, state pension payments will be:
- £203.85 per week (up from £185.15) for those who reached state pension age after April 2016
- £156.20 per week (up from £141.85) for those who reached state pension age before April 2016.
A review of the state pension age is currently being carried out, which considers whether the existing timetable remains appropriate. This will be published in early 2023.
