State pension triple lock could see 10.1% rise to payment

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State pension payments are vital for millions of Britons right across the country. Many will use these payments to budget on a day-to-day basis, but what does the future hold for the state pension?

What is the state pension triple lock?

The policy dates back to 2010, where it was first introduced by the then-coalition Government.

Since then, it has become a mainstay of Tory party policy, intended to make sure pensioners’ incomes rise in real terms.

The triple lock sees the state pension rise each year by the highest of the following: 2.5 percent, inflation or average earnings.

How much could state pension payments rise by?

Inflation in the year to September, the figure usually used for this element, was recorded at 10.1 percent as Britons continue to grapple with the cost of living crisis.

This makes inflation the highest measure out of the triple lock and therefore what is likely to be used to increase payments.

If the triple lock were to return, basic state pensioners could see an annual income rise of £745.

It would see the full basic state pension rise from £7,401.53 to £8,149.24 annually. 

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A potential £972 annual rise would be available to those on the new state pension scheme. 

This would mean the full new state pension rising from £9,660.85 per year, to £10,636.60.

Some may get less than the full new state pension if they were contracted out before April 6, 2016.

When will state pension payments rise?

State pension and benefit payments normally increase every April.

This means the next increase to the state pension is scheduled for April 2023.

Decisions surrounding the triple lock are usually taken in the autumn, leaving pensioners on a knife edge in the coming weeks. 

Will the triple lock stay?

The Government’s stance on the matter is somewhat unclear, as Prime Minister Rishi Sunak has recently taken charge at Number 10.

While former Prime Minister Liz Truss said she was devoted to upholding the policy, the issue is yet to be decided by the new Government.

In his position as Chancellor, Rishi Sunak temporarily suspended the triple lock for the year 2022/23 – as a predicted eight percent increase was deemed unfair to younger taxpayers.

However, before departing this role, Mr Sunak expressed his support for bringing back the increase.

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Recently, a Number 10 spokesperson said “uncertainty” over the state pension was “difficult for pensioners”.

The press secretary added a decision on the matter would be “wrapped up into the fiscal statement” on November 17.

How to claim the state pension

Individuals will not get a new state pension automatically, and they have to claim it.

People should receive a letter “no later than two months” before reaching state pension age, according to the Government, telling them what to do.

The quickest way to get the state pension is to apply online via the GOV.UK website.

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