You are here: Home - Retirement - Retirement planning - News -

Government confirms state pension rate for 2022 to 2023

0
Written by: Emma Lunn
26/11/2021
The Department for Work and Pensions (DWP) has confirmed that the state pension will rise by 3.1% next April, in line with the Consumer Price Index (CPI).

The decision was enabled after plans to scrap the triple lock for one year received Royal Assent last week. This legislation temporarily suspended the earnings element of the triple lock for one year only, following distortions to the earnings statistics.

This means the basic state pension will increase to £141.85 per week next year and the full rate of new state pension will increase to £185.10 a week.

The government said that in taking this decision, it carefully considered the fairest approach for both pensioners and younger taxpayers, many of whom have been hardest hit by the financial impacts of the pandemic. It said it planned to return the earnings element of the triple lock next year.

All other benefits will also be increased in line with CPI of 3.1%. This includes working-age benefits, benefits to help with additional needs arising from disability, carers’ benefits, pensioner premiums in income-related benefits, statutory payments, and additional state pension.

Becky O’Connor, head of pensions and savings at Interactive Investor, said: “Many pensioners will be disappointed with this rise which doesn’t cover the rises they are experiencing in real time in the cost of heating and eating.

“They will be left worrying about how they will manage their bills over the coming year. It will be cold comfort to them that the inflation they are struggling with now will be reflected in next year’s uprating.

“The decision to scrap the triple lock for a year proved controversial, despite being justified by extremely high post-pandemic earnings figures, amid rising inflation since September. The government must maintain its commitment to reinstate the lock next year and do more to boost the uptake of pension credit among the poorest pensioners in the meantime.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

PayPal closing down Money Pools

The ability to create new Money Pools will be disabled from 30 September, while existing Money Pools will be s...
PayPal closing down Money Pools

BLOG: Get a personal MOT with your work perks

Thinking about exercising more, eating less or starting a new hobby in 2022? Before anything else, consider wh...
BLOG: Get a personal MOT with your work perks

How to a write a winning property offer letter

You’ve viewed the perfect property but there’s likely to be stiff competition from other buyers. Here are five...
How to a write a winning property offer letter

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Money Tips of the Week

Privacy Preference Center

Necessary

Advertising

Analytics

Other