Ending the triple lock, which is ‘costing’ claimants £486 per year, is a state pension warning.


Ending the triple lock, which costs claimants £486 a year, is a state pension warning.

Those who receive a state pension have been warned that pending changes could cost them £486 per year.

Last year, Chancellor Rishi Sunak confirmed that the triple lock pledge would be temporarily suspended in order to save the government money.

The triple lock, which was introduced in 2010, is the government’s promise to raise the state pension rate by either inflation, average earnings growth, or 2.5 percent.

The data on average earnings has been skewed dramatically due to the pandemic and widespread use of the furlough scheme.

Because they were on the Coronavirus Job Retention Scheme in the early days of the pandemic, people earned less.

When people returned to full-time work and left the scheme, however, average earnings increased dramatically.

For example, if the triple lock is maintained, state pension payments will increase by 8% to match earnings in the UK.

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Instead, Mr Sunak has opted for a ‘double lock’ policy on state pensions, which means that the amount received will increase by the higher of inflation or 2.5 percent.

In April, state pension payments will increase by 3.1 percent due to higher inflation reported in October.

According to AJ Bell’s research, older Britons would have seen an 8.3 percent increase in their earnings if the earnings link had remained part of the triple lock.

The full flat-rate state pension would have increased to £194.50 per week for claimants as a result of this change.

As a result of the triple lock, pensioners would have received £10,114 per year from the government.

Rather, the state pension will increase by £5.55 per week, or £9,627.80 per year.

This means that in 202223, those receiving the full state pension will lose £486.20 in state pension income as a result of the government’s decision.

The Government’s decision to break its triple lock promise has harmed pensioners, according to Tom Selby, the head of retirement policy at AJ Bell.

“The decision to scrap the earnings element of the state pension triple-lock in 202223 means retirees will only receive a 3.1 percent increase in their benefit,” Mr Selby explained.

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