MILLIONS of pensioners look set for a bumper £750 pay rise next year.
The triple lock sees the state pension rise in line with whatever is highest out of wages, 2.5% and inflation for the previous September.
AlamyMillions of pensioners can expect to receive a pay rise from next April[/caption]
The system is designed to shield older people from inflation, which can see people’s real-term incomes drop.
The triple lock was temporarily suspended because of the pandemic and reduced to a double lock.
But it was reinstated this year after inflation soared.
The Bank of England is forecasting inflation to be at 7% this September.
If the triple lock stays in place, although the Government is yet to confirm this, it would see pensioners receive a pay boost worth hundreds of pounds from April 2024.
It’s also worth bearing in mind inflation for September might not be at 7%. It could be higher or lower.
However, based on a 7% figure, it would mean the full state pension going up from £203.85 a week currently to £218.15 a week from next April – worth £742 a year.
It would see maximum yearly payments hit £11,342, the first time it would have gone over £11,000.
Meanwhile, the basic state pension rate, which you get if you turned state pension age before this date, would go up from £156.20 a week currently to £167.15 a week – a £568 a year boost.
It would mean the maximum amount someone on this state pension reaching £8,690.
It’s worth bearing in mind if the state pension goes up by 7% from April 2024, it means pensioners will be contending with a higher cost of living for around six months before getting the pay bump.
Steve Webb, pensions expert and partner at LCP, said: “It is important to remember that this is simply compensation for the surging cost of living which pensioners are already having to finance.
“With a General Election due later in 2024, it would be very surprising if the Government chose to do anything less than increase the state pension in line with prices.”
The state pension rose by 10.1% in April after inflation in September 2022 reached 10.1%.
The figure has remained high in recent months – in March it stood at 10.1% after rising the month before to 10.4%.
Anyone struggling with their bills can get access to extra help though.
The Government is offering out three cost of living payments worth £900, £150-£300 and £150.
The first instalment of the £900 payment should be made to all those eligible by May 17.
The second and third instalments are set to be paid in autumn this year and spring 2024.
Meanwhile, millions of pensioners will receive a £150-£300 top up to their Winter Fuel payment.
And the £150 payment will be made to millions with a disability.
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