Uk News How much is the state pension? The current rate and how much it will increase under triple lock United Kingdom news
PremierLeague-News.Com - Pensioners could be in line for an extra £960 a year
PremierLeague-News.Com - Breaking Sport Transfer News ! Older people are in line for a double-digit boost to their state pension next year after the Government pledged to restore the triple lock system. The rate for the full new state pension is £185.15 per week, but it could increase by around 10 per cent in April.How much is the state pension?The new state pension – for people reaching the state pension age on or after 6 April 2016 – is worth more than £9,600 a year for older people who receive the full amount.People receiving the full basic state pension get £141.85 a week or around £7,400 a year.Does the rate change?The state pension is protected by a system called the triple lock, which ensures it rises every year by whichever is the highest of inflation, earnings growth or 2.5 per cent.However, the Government controversially amended the policy for April 2022 by removing the earnings link over concerns about affordability.High earnings growth meant the Government could have spent in the region of £4bn to £5bn if they had not intervened with a double lock increase – the highest of inflation or 2.5 per cent.Rather than giving older people an increase of about 8 per cent in line with wages, their state pension rose by only 3.1 per cent, the inflation rate. The new state pension rose from £179.60 to £185.15 a week while the basic rate went from £137.60 to £141.
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.The manifesto-breaking move was highly criticised, with MPs, charities and older people themselves voicing concerns about how they will cope with the rising cost of living. What will happen next year?The Government has said the triple lock will be restored for April 2023, meaning the state pension, but not public sector pay, will rise in line with inflation partly because pensioners are “more vulnerable to cost-of-living pressures”.The Prime Minister Boris Johnson’s official spokesman said: “Pensioners, particularly those who receive state pensions, are disproportionately impacted by high energy costs. They can’t always increase their incomes through work and they are more vulnerable to cost-of-living pressures.“And that’s, for example, why we introduced additional support for pensioners as part of our cost-of-living package, the pension and cost-of-living payment of £300. We’ve said the triple-lock freeze was temporary.”With the triple lock determined by Septembers CPI inflation rate, it looks likely that pensioners will get an increase of around 10 per cent next year.This could give those on the new state pension an extra £960 a year, costing taxpayers £10bn. People on the old rate will get an additional £740 a year.Steven Cameron, pensions director at Aegon, said “renewed commitment from the Government to the state pension triple lock will offer some reassurance to state pensioners”. “Many were left severely disappointed when the Government broke their manifesto commitment and temporarily replaced the state pension triple lock with a less generous ‘double lock’, meaning the state pension rose by 3.1 per cent this April, far below the current inflation rate.“The latest commitment is to be welcomed, meaning the increase in April 2023 and later years of this Parliament will be the highest of earnings growth, inflation or 2.5 per cent. Anything less would have been met with pensioner outrage. But it still means many pensioners face a difficult squeeze on their cost of living for the next 12 months.”
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