State Pension rates are set to increase as the 'triple lock' has now been reinstated. Claimants are expected to see a boost in their income when the payment is reviewed.
This year has seen a minimal increase in State Pension rates as they rose by 3.1%. A temporary removal of the 'triple lock' caused the small growth.
The Echo reports a 'triple lock' guarantees pensions will increase by the highest amount of inflation. The increase is according to the Consumer Price Index in September, average wage increases, or 2.5 per cent.
Read more: DWP issues urgent £650 cost of living payment warning to everyone of State Pension age
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.
Lincolnshire Live has 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 percent. A rise would result in 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 updated 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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