Millions of pensioners in the UK are set to receive a pay increase of around £850, despite concerns over the cost to the public purse, according to Chancellor Rishi Sunak.
Triple lock promise
Sunak has vowed to uphold the triple lock policy, which ensures that the state pension is increased annually by the highest of three factors: average earnings, inflation, or 2.5%. This means that pensioners can expect a potential rise of £850 next year.
Rising wages and fears of axing the policy
Wages are currently rising faster than prices, with an increase of 7.8% expected to reach 8% next month. This figure will be used to calculate the annual increase in pensions for April.
There have been concerns that Sunak may scrap the triple lock in order to save the Treasury approximately £2 billion. However, when asked about his commitment to the policy, he assured ITV that the government is committed and that final decisions on pension increases are made during the autumn.
Average state pension and previous boosts
There are currently 12.5 million individuals receiving the state pension, averaging £204 per week. An 8% increase would mean an additional £847 per year. Last year, pensioners saw a significant boost of 10.1% due to inflation.
Vote winner for Tories
Maintaining the triple lock policy is viewed as a way to appeal to older voters, a key demographic for the Conservative Party.
