State pensions to rise by 10% as Treasury confirms ‘significant’ rise in inflation

People who struggle State pension The Treasury has confirmed that there will be a significant increase next year, as the government brings back the triple lock system used to handle payments. This is expected to increase the pension amount by about £ 1,000.

The increase in pensions is usually based on a ‘triple lock’ which sees whichever of the three increases the most: inflation, increase in average wages, or 2.5%. Inflation has already reached 9.1 percent in May, its highest level since 1982, and is now expected to exceed 11 percent in October, the dominant factor of all three.

The Bank of England had earlier predicted that the Consumer Price Index – the price of goods and services used as a measure of inflation – would remain above 10% in the fourth quarter of this year. Then in September. DWP Sets the state’s pension figures for the next fiscal year, indicating a double-digit increase in the number of cards for pensioners.

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The triple lock was set aside. DWP Last year, when the biggest factor was the increase in wages after the fall of Ferlo, because it would have led to an 8% increase in pensions for 2022-2023. Instead, inflation figures from September 2021, then only 3.1%, were used. This year’s pension amount.

Bringing back the triple lock for the next set of pension increase calculations would mean an even bigger increase, as inflation is the dominant idea.

The Treasury has now confirmed that the triple lock will remain in place and will significantly increase the state pension as well as all other benefits. Confirmation came in one Parliamentary answer When the ministers were asked what they were doing to deal with the current crisis in the lives of pensioners.

Janet Debbie, Labor MP for Lewisham East, asked if the chancellor would “introduce any additional measures aimed at helping pensioners cope with inflationary pressures.”

Simon Clark, Chief Secretary for the Treasury, replied: “Next year, the triple lock will apply to state pensions. Pensions and other benefits will be upgraded through the CPI this September, subject to review by the Secretary of State.” “According to current forecasts, inflation is likely to be significantly higher than the forecast for 2023/24.”

The expected 10% increase in payments would increase the New State Pension from £ 185.15 per week to £ 203.70 per week – a one-year, 52-week basis, an increase of 64 964.50 from £ 9,627.80 to £ 10,592.40. However, only 2.2 million people in the UK receive a new state pension. The majority – the other 10.3 million pensioners – are on lower payments of the old basic state pension.

With a 10% increase, the old basic estate pension will increase from £ 141.85 per week to £ 156.05 per week – an increase of £ 738.40 over one year from £ 7,376.20 to £ 8,114.60. People typically need a total of 30 qualifying years of national insurance contributions or credits to receive a full basic state pension. Otherwise, they will receive even less – but they can claim the pension credit and take it up.

Mr Clarke said the government was doing other things to help pensioners who were struggling with household expenses such as energy bills and food prices.

He said: “The government is providing £ 37 billion in life aid this year, including نئے 15 billion in a new aid package announced in late May. This includes all pensioners this winter Includes extra support to help me stay warm.

“Households eligible to pay for winter fuel will receive an additional one-time payment of £ 300, which is paid in November / December, along with winter fuel payment. Pensioners, all household electricity consumers. As of October, we will see a 400 rebate on our bills. No need to pay through the extension of the Energy Bills Support Scheme. Will, from the first of July and the second fall.

“Additional assistance for pensioners can be provided by local authorities through the Household Support Fund, which will run until April 2023.”

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