Birmingham news DWP set to pay out £2,000 State Pension windfall as inflation triggers big rises PremierLeague-News.Com
PremierLeague-News.Com - The level of inflation next month will be the deciding factor for pension amounts coming into effect in April 2023 - and a similar increase is expected the following year
PremierLeague-News.Com - Breaking Sport Transfer News ! The State Pension is in line for a massive £2,000 windfall, experts have predicted. The Department for Work and Pensions is set to use this year's soaring inflation figures to determine a huge increase in retirement incomes. Although pensioners this year saw only a 3.1 per cent boost in their payments after normal rules were set aside, a bumper increase is on the cards for 2023-2024 because the Consumer Price Index will be the overriding factor taken into consideration. And a similar increase is set to be applied for 2024-2025 as inflation is now forecast to remain in double digits for most of next year. That would mean a similar rise, amounting to a total increase of £2,000. READ MORE: DWP issues new update in State Pension age change battle with WASPI campaigners Pension rises are normally based on a triple lock that sees them go up by whichever is the highest of inflation, average wage increases or 2.5 per cent. But with the jump in wages at the end of furlough, this would have been the overriding factor of the three and led to pensions going up by 8 per cent this year. So the DWP announced last September it would set the wages element aside, and instead use the inflation figure of 3.1 per cent at that time. However, the triple lock is now being reinstated and when 2023-2024 pensions are worked out, inflation is set to be the highest of the three criteria in the triple lock. The Bank of England had earlier forecast that the Consumer Price Index - the price of goods and services used as a measure of inflation - would be above 10 per cent in the fourth quarter of this year. It will be September's inflation figure, published in October, that the DWP uses to set the State Pension figures for the following financial year, signalling that a double-digit percentage boost is on the cards for pensioners. Work and Pensions Secretary Therese Coffey has defended plans to increase the State Pension in line with inflation while public sector workers are likely to face real-terms cuts. She told the BBC Sunday Morning programme: "We are going back to our policy of the triple lock, we suspended it for one year because freakish statistics would have given pensioners a particularly odd earnings relation in terms of rises. I formally have to make a decision in the autumn so I can't predict that but do recognise the average income of pensioners is very low. “So potentially a 10 per cent rise or matching inflation, whatever the appropriate rate would be at the time would be, I think, a measured approach recognising that their opportunity for people to earn more income is very limited, if possible at all." Andrew Tully, technical director at Canada Life said it might be even higher. He said: "It could be 10, 11 or even 12 percent, depending on September's inflation figure, which is used when setting the triple lock." How much are the new amounts likely to be? The following calculations are estimates based on DWP's recent comments about a 10 per cent increase.
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.15 per week to £203.70 Per 4-weekly pay period: From £740.60 to £814.80 Per year (based on 52 weeks): From £9,627.80 to £10,592.40, a rise of £964.60. A similar rise is expected for the following financial year of 2023-2024 Old Basic State Pension Weekly: This could increase from the current rate of £141.85 per week to around £156.05 Per 4-weekly pay period: From £567.40 to around £624.20 Per year (based on 52 weeks): From £7,376.20 to £8,114.60, a rise of £738.40. A similar rise is expected for the following financial year of 2023-2024 Around 2.2 million people in Britain get the New State Pension. The majority - the other 10.3 million pensioners - are on the lower amounts of the old Basic State Pension. They are able to top up their income with Pension Credit, the Government said. READ NEXT: DWP August Bank Holiday payment changes for State Pension and every benefit including Universal Credit, PIP, ESA, JLA Millions on State Pension could get up to £2000 in cost of living payments - full list Get all the latest benefits and money-saving news in our daily newsletters delivered to your inbox 12 big changes to your finances in August including Universal Credit and cost of living cash Thousands rush for DWP top-up that gets you free TV licence and cost of living cash
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