What is the triple lock and how much will my pension go up by?

The state pension will go up by inflation in April 2023, Chancellor Jeremy Hunt has confirmed.
There had been speculation the government would break the so-called "triple lock", which is designed to protect the value of the state pension.
In the Autumn Statement, Mr Hunt confirmed that the state pension and a number of other benefits will go up by 10.1% – in line with September's Consumer Prices Index (CPI) measure of inflation.
From April 2023 payments will be:
Under the triple lock, the state pension is supposed to increase each year in line with whichever of these three measures is highest:
The increase comes into effect each April.
The triple lock was introduced by the Conservative/Liberal Democrat coalition government in 2010.
It was designed to ensure the value of the state pension was not overtaken by the increase in the cost of living or the working population's income.
Before Mr Hunt's announcement, the government was thought to be considering increasing benefits in line with by average wages instead. That would have meant a rise of 5.7%.
The Resolution Foundation think tank estimated that would have saved the government £6bn in 2023.
Overall, the state pension accounts for just under half of the total amount of money the government spends on benefits each year.
In 2021-22 it spent £104.7bn on the the state pension. This was an increase of £2.9bn from the amount spent in 2020-21.
The government says 12.4 million people currently receive the state pension.
Men and women born between 6 October, 1954 and 5 April, 1960 start receiving their pension at the age of 66.
But for people born after this date, the state pension age is gradually increasing to 67 by 2028 and 68 by 2046.
If they have no other source of income, those above retirement age may also be entitled to Pension Credit on top of the basic state pension.
Mr Hunt confirmed this will also increase by 10.1% from April 2023.
If you get Pension Credit, you may also be entitled to other financial support, including housing benefit, a reduction in council tax, help with your heating costs through the Warm Home Discount Scheme.
As of August 2021, 1.4 million people received Pension Credit, although many of those who are entitled to the extra help do not claim it.
People born before 26 September 1956 are also entitled to the annual Winter Fuel Payment.
In its 2019 election manifesto, the Conservative Party said it would keep the triple lock in place for the duration of this Parliament.
However, during the Covid-19 pandemic the triple lock was suspended. This was because of an unusually large rise in average earnings following the end of the government's furlough scheme.
As a result, pensions increased by the CPI measure of inflation (then 3.1%) for 2022-23.
UN climate talks go into the night to reach a deal
Fifa boss accuses West of World Cup hypocrisy
Leave if you can to save energy – Ukraine power boss
Why US election results are taking so long
Weekly quiz: What was Trump's nickname for rival?
Controversial World Cup set to get under way
Katty Kay: My interview with election-denier Kari Lake
‘Dropbox’ babies – the surrendered infants in US
How a North Korean defector became a fight champion. Video
'It's classless' – using ice cream to help people talk about grief
Why Qatar is a controversial choice for the World Cup
Were Russian soldiers shot after surrendering?
Sign up to Klinsmann's daily World Cup newsletter
World Cup winner Jürgen Klinsmann invites you to subscribe to his daily World Cup newsletter.
The source of half the world's lithium
The clever homes hidden from pirates
© 2022 BBC. The BBC is not responsible for the content of external sites. Read about our approach to external linking.


Leave a Reply

Your email address will not be published. Required fields are marked *