Retirees breathed a huge sigh of relief yesterday after Prime Minister Liz Truss confirmed the state pension triple-lock will be retained next year.
The commitment should mean a blockbuster 10.1% increase in state pensions in 2023, providing a welcome boost to the incomes of millions of retirees.
The PM and Jeremy Hunt, the chancellor, confirmed earlier this week that they were considering scrapping the “triple lock”, which raises pensions in line with inflation, earnings or 2.5%, whichever is highest.
The move would have resulted in millions of pensioners facing a £400 drop in their income next April, with the inflation figures yesterday reporting price rises about double the rate of earnings.
However, despite comments earlier this week from the new chancellor, Ms Truss told the Commons: "We have been clear in our manifesto that we will maintain the triple lock and I am completely committed to it. So is the chancellor."
State pension increases for 2023/24:
If the triple-lock is retained, as Liz Truss indicated in parliament, the state pension should be uprated by 10.1% next year in-line with CPI inflation for September:
- The full flat-rate state pension, paid to those reaching state pension age from 6 April 2016, will increase from £185.15 per week to £203.85 per week (£10,600.20 per year) from April next year*
- The basic state pension, paid to those who reached state pension age before 6 April 2016, will increase from £141.85 per week to £156.20 per week (£8,122.40 per year)*
*Rounded to the nearest 5p.