Pensioners could face the “double whammy” next April of a real terms cut to their state pension as well as the prospect of energy support being pared back, experts have warned. They could miss out on £8.50 per week or £442 per year in income if the state pension is increased in line with earnings next year instead of with inflation.
The triple lock is normally used to calculate the increase in the state pension but it was suspended for a year last year and state pensions instead rose by 3.1%. The mechanism would guarantee that state pensions increase by September’s inflation figure, wages or 2.5% – whichever is higher.
Consumer Prices Index (CPI) inflation rose by 10.1% in September, according to Office for National Statistics (ONS) figures released on Wednesday. Sir Steve Webb, a former pensions minister said that if the triple lock is maintained and pensions rise in line with inflation, the new state pension would rise from £185.15 per week to £203.85.
