Millions of pensioners set for bumper £750 pay rise next year
MILLIONS of pensioners look set for a bumper £750 pay rise next year.
The triple lock sees the state pension rise in line with whatever is highest out of wages, 2.5% and inflation for the previous September.
It is expected inflation will be at 7% this September, meaning millions would see their state pension boosted by hundreds of pounds from April 2024.
Of course, this is based on the triple lock continuing and inflation being higher than wages and 2.5%.
But, it would mean the full state pension going up by around £742 a year from next April, to £11,342.
This is the rate you get if you reached state pension age before April 6, 2016.
Meanwhile, the basic state pension rate, which you get if you turned state pension age before this date, would go up by around £568 a year, to £8,690.
Steve Webb, pensions expert and partner at LCP, said: “It is important to remember that this is simply compensation for the surging cost of living which pensioners are already having to finance.
“With a General Election due later in 2024, it would be very surprising if the Government chose to do anything less than increase the state pension in line with prices.”
Meanwhile, Jamie Jenkins, from Royal London, added 7% was an estimate, and the actual rise could be higher or lower come next April.
He warned: “The triple lock itself is not guaranteed and could be watered down temporarily or indeed permanently removed if the Government decides that it is unaffordable.”
The state pension rose by 10.1% in April after inflation in September 2022 reached 10.1%.
The figure has remained high in recent months – in March it stood at 10.1% after rising the month before to 10.4%.
Last week, the Bank of England hiked its base rate from 4.25% to 4.5%, the highest level in 15 years, in a bid to force inflation down.
But it also means millions of homeowners are facing higher mortgage repayments.
Anyone struggling with their bills can get access to extra help though.
The Government is offering out three cost of living payments worth £900, £150-£300 and £150.
The first instalment of the £900 payment should be made to all those eligible by May 17.
The second and third instalments are set to be paid in autumn this year and spring 2024.
Meanwhile, millions of pensioners will receive a £150-£300 top up to their Winter Fuel payment.
And the £150 payment will be made to millions with a disability.
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