Pensioners set for a payment rise in line with inflation

TRIPLE LOCK HAS GONE, BUT INCREASE IS SET TO BE AROUND 10%

THE state pension increases every year to try to ensure that older people always receive a fair amount. But, due to the recent removal of the triple lock, this year’s rates only saw a minimal increase.

The triple lock was a system of three measures that aimed to protect the state pension from inflation, and ensure that it rises by each year according to average wages.

Due to the removal of furlough last year creating an abnormal wage increase, that part of the rule was temporarily scrapped. This meant that pension payments rose by just 3.1 per cent. However, the rise at the next review is set to be significantly higher.

Derbyshire pensioners will get a significant boost to their payments at the next review.

Here is a guide on pension payments for the next year, including when the new rates will come into effect, and when they are likely to be announced.

When will the State Pension increase?

Updated payments for the State Pension will come into effect from April 2023. This is when payments change for all benefits paid by the Department for Work and Pensions (DWP).

Payments are also likely to be increased by the rate of inflation in September 2022.

At the moment, inflation sits at near 10 per cent. A rise of this nature would result in New State Pension weekly payments increasing from £185.15 to around £203.70, and anyone being paid every four weeks going from £740.60 to around £814.80.

Claimants of the old basic State Pension would go from £141.85 per week to around £156.05, or £567.40 to around £624.20 if paid every four weeks.

When will the updated State Pension rates be confirmed?

As of yet, there is no official date for an announcement on updated State Pension rates.

However, we can estimate a rough time for an announcement by looking at when it was confirmed last year.

In 2021, the new rates were announced by the government on November 25. This, if the same time frame is kept to, means we are likely to see confirmation of the new rates in just a few months.