"The Treasury is preparing to increase the UK state pension by more than 8 per cent next year because of the controversial “triple lock”, which has raised retirees’ incomes faster than workers’ wages.
The sharp increase in state pension payments follows a 10.1 per cent rise this year. Pensioners who were protected from last year’s energy-driven inflation will now receive another boost, this time in line with the increase in average wages.
Since 2010, the triple lock has ensured the state pension rises each year in line with inflation, average earnings or by 2.5 per cent, whichever is higher. It was only suspended in 2022-23 when wage data was distorted by the Covid crisis.
The triple lock for next year will be set by pay growth, which rose by an annual rate of 8.2 per cent in the April to June period. Economists expect a similar figure to be published on Tuesday for the May to July period that will be used for the pension rise, partly reflecting one-off bonuses for public sector workers."
FT.com
In other news, most pensioners vote Conservative.
The sharp increase in state pension payments follows a 10.1 per cent rise this year. Pensioners who were protected from last year’s energy-driven inflation will now receive another boost, this time in line with the increase in average wages.
Since 2010, the triple lock has ensured the state pension rises each year in line with inflation, average earnings or by 2.5 per cent, whichever is higher. It was only suspended in 2022-23 when wage data was distorted by the Covid crisis.
The triple lock for next year will be set by pay growth, which rose by an annual rate of 8.2 per cent in the April to June period. Economists expect a similar figure to be published on Tuesday for the May to July period that will be used for the pension rise, partly reflecting one-off bonuses for public sector workers."
FT.com
In other news, most pensioners vote Conservative.
