A pensions expert is warning 12.5 million older people across the UK to prepare for a financial blow this week when Chancellor Jeremy Hunt delivers the Autumn Statement. Ray Black, managing director of chartered financial planning firm, Money Minder, suggests there may be “continued restrictions on State Pension uprating”, higher taxes and more controversially, an increase to National Insurance contributions from April announced on November 17.
The Triple Lock rule is the UK Government’s guarantee that State Pensions grow in line with whichever is highest out of earnings, inflation or 2.5%. Earlier this week, Work and Pensions Secretary, Mel Stride said that pensioners will be kept to the “forefront” as difficult spending decisions are taken by the UK Government.
His comments come as Prime Minister Rishi Sunak considers raising State Pensions and benefits in line with inflation in a move that would likely usher in deeper public spending cuts elsewhere and higher tax rises. Treasury sources insisted no decisions have been taken, but did not deny a report in the Times stating they would avoid real-terms cuts on pensions and benefits.
