Finally a small glimmer of good news could be on its way for anyone who claims a State Pension. Those that do could stand to receive an extra £1,000 to their pension pot next April. The news comes after the rate of inflation shot up, and the UK Government promised to reinstate the “triple lock”.
The triple lock ties the State Pension to increase by either average earnings, inflation or 2.5 per cent - whichever is higher. This means annual payments are set to rise to almost £10,600 - that's an increase of £1,000.
According to the Telegraph, the new State Pension could break the £200-per-week mark for the first time if the UK Government sticks to its pledge. This would be welcome news for pensioners, many of whom are on the lowest incomes.
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The Bank of England's latest forecast for inflation states it is set to peak at 10.25%. Laith Khalaf, head of investment analysis at AJ Bell, told The Mirror: “The Bank of England is now forecasting that inflation will run at 6.6 percent next year.”
Claimants of the State Pension will be buoyed by the promised re-implementation of the triple-lock, as April saw Chancellor Rishi Sunak announce just a 3.1 per cent increase in the benefit, despite the cost of goods increasing at twice the rate. Those on the old basic State Pension, people who retired before April 6, 2016, will get the same percentage uplift.
However, this will be on a smaller sum, as the old State Pension is lower. Labour's Jonathan Ashworth said pensioners "have been betrayed by Boris Johnson" over the decision to not immediately re-introduce the triple-lock - as many are facing energy bill increases of up to 54 per cent.
