State Pension payments could soon increase by 10 per cent to more than £200 per week.
The Department for Work and Pensions (DWP) announced earlier in the year that the temporary suspension of the Triple Lock rule would be scrapped. The Triple Lock rule means that the State Pension rises every year in line with whatever is the highest out of inflation, average earnings, or a minimum of 2.5 per cent.
The rule was suspended for one year in 2021, with the average earnings component being dropped. This was due to average earnings seeing a major boost last year as workers were coming off of the furlough scheme and getting back into work.
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As a result, State Pension payments saw an increase of 3.1 per cent, while the inflation figure in September 2021 was 9 per cent. The reintroduction of the Triple Lock could see their weekly payments ruse by 10%, based on current inflation statistics.
As reported by the Daily Record, Work and Pensions Secretary, Dr Therese Coffey MP appeared on the BBC Sunday Morning programme to discuss the reintroduction of the Triple Lock. She said: “We are going back to our policy of the Triple Lock, we suspended it for one year because freakish statistics would have given pensioners a particularly odd earnings relation in terms of rises.
“I formally have to make a decision in the autumn so I can’t predict that but do recognise the average income of pensioners is very low. So potentially a 10% rise or matching inflation, whatever the appropriate rate would be at the time would be, I think, a measured approach recognising that their opportunity for people to earn more income is very limited, if possible at all.”
State Pension payments with 10% uprating 2023/24
A rise of 10 percent could mean that State Pension claimants get a weekly boost of as much as £18.51, which would mean they would get an additional £74.10 every four weeks. See below for estimations of how much State Pension claimants may receive in 2023/24 if a 10 per cent increase goes ahead.
New State Pension
- Weekly: This could increase from the current rate of £185.15 per week to around £203.70
- Per 4-weekly pay period: From £740.60 to around £814.80
Old Basic State Pension
- Weekly: This could increase from the current rate of £141.85 per week to around £156.05
- Per 4-weekly pay period: From £567.40 to around £624.20
Those who receive the State Pension can choose to have it paid either once a week or once every four weeks.
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