Pensions are set to rise by just 3% as ‘triple-lock’ pledge is suspended to save the Treasury billions
- Triple lock means pensions rise with highest of inflation, earnings or 2.5 per cent
- Pledge scrapped after pandemic distorted rise in average earnings to 8 per cent
- Instead, pensioners are in line for a rise of just 3.1 per cent from April next year
Suspending the ‘triple-lock’ state pension pay rise pledge will save the Treasury £5.4billion next year.
But it has been slammed by experts who say that it will hit Britain’s 12 million pensioners very hard.
The triple lock guarantees that the state pension rises every year in line with the highest of either inflation, average earnings or 2.5 per cent.
Ministers have scrapped the pledge for a year after the pandemic distorted wage figures to show earnings rose by more than 8 per cent.
Instead, pensioners are in line for a rise of just 3.1 per cent from next April.
Budget papers said average earnings had been dismissed ‘to ensure that the public finances remain sustainable in a manner that is fair across all generations’.
There were also no increases to vital benefits such as the winter fuel payment.
Ministers have scrapped the triple-lock pledge for a year after the pandemic distorted wage figures to show earnings rose by more than 8 per cent (file image)
Cold weather payments and the warm home discount will also stay the same.
Former pensions minister Ros Altmann said: ‘There is absolutely nothing in the Budget for pensioners – especially the poorest.
‘The Chancellor has a choice and he has chosen to ignore these people who are struggling.’
The report added: ‘This action will protect taxpayers from a significant fiscal pressure, while protecting pensioners from higher costs of living.’
The latest inflation figures mean pensioners are instead in line for a pay rise of just 3.1 per cent.
This is despite inflation expecting to soar above 4 per cent by the end of the yea
It means a retiree collecting the old state pension will receive an extra £4.25 a week, while someone claiming the new state pension will get an extra £5.55.
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