01204380038 syddall@pbsyd.co.uk

State pensions set to rise 3.1% in 2022/23

22nd October 2021

The state pension is to increase by £290 a year (£5.50 per week) in April 2022, after the Consumer Prices Index hit 3.1% in September, the third highest pension increase since the introduction of the triple-lock.

Retirees were recently told their incomes would rise either by 2.5% or the level of inflation in 2022/23, whichever is highest, after the Government suspended the pensions triple-lock for a year given an unusually high change in earnings of 8%.

Some pensioners will be disappointed that the Government broke its manifesto commitment to the triple-lock, while others will accept the words of Work and Pensions Secretary, Thérèse Coffey, that this year's high wage growth was a "statistical anomaly".

People who claim the full new state pension are likely to start receiving £185.15 per week from April 2022, while those with the full basic state pension will get £141.85 per week.

Steven Cameron, pensions director at Aegon, said:

"An 8.3% earnings based increase would have represented a windfall bonus for state pensioners, but would have created a £7.5bn annual bill paid for from the National Insurance of today's workers.

"However, if inflation continues to surge in the coming months, there's a concern the 3.1% increase may fall short of cost of living increases come April 2022."

Talk to us about your retirement plan.

Get it on Google play Available on iTunes



    Iris Logo      2020 Innovation logo 

BAS Logo        ACIE Logo Sage Accountants Club logoVouched For logo KashFlow Quickbooks Pro Advisor LogoXeroFreeAgent