The Conservatives and Labour recently committed to honouring the Triple Lock guarantee on State Pensions until the end of the decade. The policy was introduced by the Coalition Government in 2010 to ensure that the State Pension rises in line with the greater of the September’s Consumer Price Index (CPI) inflation rate, earnings growth, or 2.5%.
The Secretary of State for Work and Pensions, Mel Stride MP, said last month that the Triple Lock would “almost certainly” be in next year’s Conservative Party manifesto and that there was a “particular duty” to support pensioners who cannot increase their income by working. This year, the Basic and New State Pension increased by 10.1%.
The Bank of England’s latest CPI inflation rate forecast for September is 7%, which would boost the full New State Pension from £10,600 to £11,342 from April next year. However, this could result in more pensioners paying income tax.
