Retirees to receive small pay rise as annual increase to their state pension kicks in
Retirees will receive a small pay rise from tomorrow as the annual increase to their state pension kicks in.
Payments will rise by 3.1 per cent, which means those who receive the new state pension will be getting £185.15 – an extra £5.55 a week.
Meanwhile, those who retired before April 6, 2016, and receive the old state pension will be get ting £141.85 – an additional £4.25 a week.
However, the increases will quickly be absorbed by the cost of living. Soaring energy, fuel and food bills mean prices are going up by an official rate of 6.2 per cent.
A small rise: The pension increases will quickly be absorbed by the cost of living
Figures to be released on Wednesday are expected to show that inflation has risen higher still in March, putting further pressure on already stretched households.
Tomorrow’s rise is considerably lower than it would have been had the Government not downgraded the state pension triple lock this year.
The triple lock – as committed to in the Government’s manifesto – promised to increase the state pension by whichever was the highest out of inflation, wage growth or a figure of 2.5 per cent.
However, the Department for Work and Pensions claimed there had been ‘distortions’ to the earnings figures due to the pandemic, which would have meant a state pension rise of about eight per cent.
Instead, it increased pensions by the second highest of the three triple lock elements – the rate of inflation last September.
The Government claims it will restore the triple lock next year, which would be likely to result in a pension increase next April by next September’s inflation figure.
Forecasts suggest that could exceed seven per cent, which would be the highest rise on record.