Official figures published today by the Office of National Statistics (ONS) revealed regular UK wages with bonuses included increased by 8.2% in the three months to June - this is the highest annual growth rate since 2001. Excluding bonuses, the figure was 7.8%.
Under the Tory Government triple lock pledge, state pensions rise every year by whichever is highest out of inflation, earnings or 2.5%. Pay growth for the three months to July is the figure that counts for the triple lock, while inflation for the year to September is the key inflation figure.
Inflation currently sits at 7.9% - which means if it stays the same or drops, the Government is likely to use the earnings figure to decide how much the state pension will rise by. If this is the case, on top of the 10.1% increase already seen in April this year, state pensioners will see their incomes increase by nearly 20% over the last two years.
According to calculations by LCP, based on a full state pension of £203.85 a week in 2023/24, if earnings remain high in July then state pensions will be set to rise by 8.2% to £11,469. This is up from it’s current amount of £10,600 and would take weekly state pension payments to £220.55.
Blimey … and pensioners used to get the short end of the stick …
Some pensioners are quite wealthy with private pensions and valuable property
And the young people who work to pay the tax that funds our state pensions are really struggling at the moment
Instead of doling out more to all pensioners, wouldn’t it be fairer to target what money’s available towards the worst off, by lowering the Pension Crexit threshold and increasing the amount our poorest pensioners can get from that?
I do realise those are not going to be popular opinions on a wrinkly site where you’re all looking forward to your bonus!
A very deceiving headline…It says that pensions could rise BY £869
When in actual fact it means TO £869 and I get that now as do millions of others.
The rise (£220 per Month) would actually take the pension to £880 per month.
So actually just over a tenner, which is less than this years rise…
The headline means pensions could rise by £869 per year.
Standard new Pension is currently £203.85 per week.so if it increases to £220.55 per week, that would be increasing by £16.70 a week - or by £869 per year.
