State Pension claimants are set to see a significant boost in their income when the payments are next reviewed.
For 2022, the rates saw a minimal increase of just 3.1% due to a temporary removal of the 'triple lock'. The 'triple lock' guarantees pension payments will increase by the highest out of inflation according to the Consumer Price Index in September, average wage increases, or 2.5 per cent.
The removal of furlough following the pandemic created an abnormal wage increase which saw the 'triple lock' scrapped. But, come the next review, those payments are expected to be significantly higher.
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LincolnshireLive have put together a guide on pension payments for the next year, including when the new rates will come into effect, and when they are likely to be announced. Here is everything you need to know.
When will the State Pension increase?
The updated payments for the State Pension will come into effect from April 2023. This is also when payments change for all benefits paid by the Department for Work and Pensions (DWP).
Payments are likely to be increased by the rate of inflation in September 2022 - currently, inflation sits at near 10 per cent. A rise would result on New State Pension weekly payments raising from £185.15 to around £203.70.
For those being paid every four weeks, payments would rise from £740.60 to around £814.80. Claimants of the old basic State Pension would go from £141.85 per week to around £156.05, or £567.40 to around £624.20 if paid every four weeks.
When will the updated State Pension rates be confirmed?
The official date for an announcement on update State Pension rates is yet to be confirmed. It can be estimated by comparison to last year.
In 2021, the new rates were announced by the government on November 25. If the time frame is kept to it means we are likely to see confirmation of the new rates in the coming months.
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