The State Pension is set to hit £200 a week, as pensioners receive a boost in line with soaring inflation rates.
In April 2023, more than 12 million pensioners will gain around £1,000 each when compared with the same time last year, after inflation reached its highest level in 40 years and living standards dropped at their sharpest rate since post-war rationing.
The news comes as The University of York found an estimated 86.4 percent of pensioner couples are expected to fall into fuel poverty, which is when energy costs exceed 10 percent of a household's net income.
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At the moment, the full new State Pension is £185.15 per week, but is set to be pushed through to £200 should inflation remain high, as predicted. Pensioners regularly have their payments reviewed to keep up with the cost of living, this is due to the triple lock system.
Last year, the triple lock mechanism was paused due to the pandemic which saw pensioners lose out on £427, according to Labour Party analysis. However, with the system returning and inflation hitting 10.1 percent, pensioners are set for a income rise, Leicestershire Live reports.
The triple lock is a rule that means the State Pension must rise each year in line with the highest of three possible figures, inflation, average earnings or 2.5 percent. As we emerged from covid lockdowns, average earnings increased and new state pensioners were in line for a eight percent increase.
However, the Treasury believed this rise would be unfeasible, so temporarily removed the earnings part of the triple lock system - much to the dismay of pensioners. Though the restored mechanism is back and set to increase the State Pension in April 2023, there is a fear that it is still not enough.
Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown said: "The reality is, we still face a long hard winter. The average income for a pensioner couple is around £511 per week.
"So even at this new level some pensioners could see fuel bills taking up almost 10 percent of their income. Single pensioner households could find it harder still – if their fuel needs hit the price cap that's a whopping 19 percent of their income allocated to keeping the lights on and the heating running."
"Pensioners solely dependent on the State Pension will find it hardest of all – a full new State Pension pays out just over £9,600 a year while those on the basic pension get just under £7,400 – energy bills will continue to be an enormous source of stress."
"Under the triple lock, pensioners are in line for a blockbusting inflation-linked increase next April, but with the cost of bills biting now that feels like a very long way away."
Ms Morrissey urged pensioners on low incomes to check whether they could be eligible for pension credit.
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