Government confirms state pension rise for 2022-23
25th November 2021 11:02
by Rebecca O'Connor from interactive investor
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interactive investor's head of pensions and savings comments.
The Department for Work and Pensions this morning confirmed that the state pension will rise in line with 3.1% next April, in line with the Consumer Price Index, after plans to scrap the triple lock for one year received Royal Assent.
This means the basic State Pension will increase to £141.85 per week and the full rate of new State Pension will increase to £185.1 a week.
The government reiterated that fairness to working-age benefit recipients as well as pensioners was behind its decision, after it rejected an amendment that would have seen the earnings link maintained, but at a lower earnings measure. It added that inflation from September would be reflected in next year’s uprating.
Becky O’Connor, Head of Pensions and Savings, interactive investor, said: “Many pensioners will be disappointed with this rise, which doesn’t cover the rises they are experiencing in real time in the cost of heating and eating.
They will be left worrying about how they will manage their bills over the coming year. It will be cold comfort to them that the inflation they are struggling with now will be reflected in next year’s uprating.
The decision to scrap the triple lock for a year proved controversial, despite being justified by extremely high post-pandemic earnings figures, amid rising inflation since September. The government must maintain its commitment to reinstate the lock next year and do more to boost the uptake of Pension Credit among the poorest pensioners in the meantime.”
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