State pension payments may hit £200 a week if triple lock returns

Martin Lewis shares tips for boosting state pension

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Retirement analysts believe an “increase will be welcome” for millions of pensioners across the country who are struggling amid the rise in the cost of living. One of the factors contributing to this crisis is inflation, with the Consumer Price Index (CPI) rate reaching 10.1 percent for September. However, concerns have been raised that the Government will backtrack on its pledge to reinstate the triple lock, which was temporarily suspended as a result of the pandemic.

The triple lock is a Government promise to increase the state pension by either 2.5 percent, average earnings or inflation.

As September’s inflation figure is always used as the metric, payments would go up by 10.1 percent if it returns.

Currently, the full new state pension comes to £185.15 per week while the basic state pension is £141.85 a week.

Older people also have the opportunity to boost their income through benefits such as Pension Credit.

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Helen Morrissey, a senior pensions and retirement analyst at Hargreaves Lansdown, shared why a payment hike is needed.

Ms Morrisey explained: “Under the CPI inflation figure the new state pension will soar 10.1 percent giving pensioners a weekly income of over £200 per week.

“At a time when people’s budgets are severely squeezed, such an increase will be welcome.”

However, with the triple lock now reportedly up for debate once again, the retirement expert is warning of the potential ramifications for older people.

She added: “To be denied such an increase would come as a bitter blow to the many pensioners who rely on state pension as the foundation of their retirement income.

“Many of them have been under severe financial pressure in recent months as inflation pushed their essential bills ever skyward.

“Their difficulties will have been compounded by the triple lock’s suspension last year with the 3.1 percent increase given being no match for the events that followed.

“However, faced with a black hole in Britain’s finances Jeremy Hunt is looking at making savings wherever possible and suspending the triple lock could save him a huge chunk of change.

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“It will however be a disaster for pensioners already facing difficult times.”

Since becoming Prime Minister, Rishi Sunak’s office has not restated its prior commitment as Chancellor to implement the triple lock this year.

Earlier this week, Mr Sunak addressed concerns over how much benefit payments will be raised in the Government’s upcoming fiscal statement.

He said: “I always acted in a way to protect the most vulnerable. That’s because it is the right thing to do and those are the values of our compassionate party.

“I can absolutely reassure him and give him that commitment that we will continue to act like that in the weeks ahead.”

On whether the triple lock will be implemented, the Prime Minister’s press secretary said: “I always acted in a way to protect the most vulnerable.

“That’s because it is the right thing to do and those are the values of our compassionate party.

“I can absolutely reassure him and give him that commitment that we will continue to act like that in the weeks ahead.”

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