Birmingham news State Pension to go up 10% as Treasury confirms huge rise based on inflation PremierLeague-News.Com
PremierLeague-News.Com - Pensioners struggling to make ends meet during the cost of living crisis will see a big boost in payments next year
PremierLeague-News.Com - Breaking Sport Transfer News ! People struggling on the State Pension are due for a significant boost next year, the Treasury has confirmed, as the Government brings back the triple lock system used to work out payments. It is expected to bring a rise of around £1,000 a year in pension amounts. Pension rises are normally based on a 'triple lock' that sees them go up by whichever is the highest of these three things: inflation, average wage increases or 2.5 per cent. With inflation already reaching 9.1 per cent in May, its highest level since 1982, and now expected to exceed 11 per cent in October, this will be the overriding factor of the three. 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 then, in September, that the DWP sets the State Pension figures for the following financial year, signalling that a double-digit percentage boost is on the cards for pensioners. READ MORE: DWP cost of living discounts worth thousands going unclaimed by 850k people The triple lock had been set aside by the DWP last year when the biggest factor was wage increases after the end of furlough, as it would have led to pensions going up by 8 per cent for 2022-2023. The inflation figure from September 2021, then just 3.1 per cent, was used instead for this year's pension amounts. Bringing back the triple lock for the next set of pension increase calculations will mean an even bigger rise, because of inflation being the dominant consideration. The Treasury has now confirmed that the triple lock will remain in place and trigger a significant rise in the State Pension as well as all other benefits. The confirmation came in a parliamentary answer when ministers were asked what they were doing to help pensioners cope with the current cost of living crisis. Janet Daby Labour MP for Lewisham East, asked whether the Chancellor would "introduce any additional measures aimed at helping pensioners to deal with inflationary pressures." Simon Clarke, Chief Secretary to the Treasury, said: "Next year, the Triple Lock will apply for the State Pension. Subject to the Secretary of State’s review, pensions and other benefits will be uprated by this September's CPI which, on current forecasts, is likely to be significantly higher than the forecast inflation rate for 2023/24." The expected 10 per cent boost in payments would see the New State Pension rise from £185.15 a week to £203.70 a week - over a year, based on 52 weeks, that's an increase of £964.50 from £9,627.80 to £10,592.
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. However, only around 2.2 million people in Britain get the New State Pension. The majority - the other 10.3 million pensioners - are on the lower payments of the old Basic State Pension. With a 10 per cent boost, the old Basic State Pension would go up from £141.85 a week to £156.05 a week - over a year that's a rise of £738.40 from £7,376.20 to £8,114.60. People usually need a total of 30 qualifying years of National Insurance contributions or credits to get the full Basic State Pension. Otherwise, they will receive even less - but may be able to top it up by claiming Pension Credit. Mr Clarke added that the Government was doing other things to support pensioners who were struggling with household costs such as energy bills and food prices. He said: "The Government is providing £37 billion in cost of living support this year, including £15 billion in a new support package announced in late May. This includes extra support to help all pensioners stay warm this winter. "Households eligible for the Winter Fuel Payment will receive an extra one-off payment of £300, paid in November/December alongside the existing Winter Fuel Payment. Pensioners, as all domestic electricity customers, will see £400 off their bills from October with no need to repay, through the expansion of the Energy Bills Support Scheme. In addition, households in receipt of Pension Credit will receive a one-off payment of £650 in two lump sums, the first from July and the second in the autumn. "Further support for pensioners can be provided by local authorities through the Household Support Fund, which will be in place until April 2023." READ NEXT: Women who lost State Pensions accuse DWP of turning a blind eye to them as they ask for £20k compensation. DWP review looking at raising State Pension age seven years earlier Cost of living boost worth over £1000 for everyone who isn't on DWP or HMRC benefits DWP explains how PIP claimants and carers can get access to £650 cost of living payment Benefits and pensions error sees thousands owed £2.6bn - full list of eligible claimants
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