‘Don’t rob us of our state pension increase’

Pensioners hit out against the breaking of a Conservative manifesto pledge to maintain the triple lock. Jessica Beard hears from readers

Two million people have to get by on a state pension of less than £ 100 per week, new figures have shown, with the Government expected to deprive them of a bumper increase next year.

Chancellor Rishi Sunak is widely expected to break the “triple lock” promise on state pension increases because of a quirk that could hand pensioners a bumper 8.8pc increase in April 2022.

While the “new” state pension pays £179.60 per week, those receiving the full basic state pension, having retired before 2016, only receive £137.60. Not all pensioners get the same amount as the weekly figure is dependent on National Insurance contributions and other historical quirks. Figures from broker Hargreaves Lansdown showed that 2.1 million pensioners received less than £100 a week, most of whom are women.

The Government will deny these pensioners a big boost to their income if it reneges on the triple lock, as it looks to avoid a huge rise in the pensions bill caused by an artificial increase in wage growth.

The state pension could rise by 8pc or more in April 2022 unless the mechanism is adjusted. This is because earnings fell during the pandemic due to furlough but have since recovered, making annual earnings growth unusually high. Boris Johnson has been advised to water down the increase to 3.5pc to save an estimated £3.5bn.

The idea has sparked fury among pensioners, who claim it would be “unfair”, “immoral” and leave many in poverty. Since 2010 the triple lock has guaranteed an annual rise by the highest of inflation, wage growth or 2.5pc.