SP Protected Amount

lindabea

I understand that the state pension is increased annually by the triple lock (at least for the forseable future)but is the 'protected amount' also increased by some % or does it remain static. I checked the gov website but I can't find anything to answer this question. I think SERPS/SP2 are increased by rpi in the old system.

zagfles

https://www.gov.uk/new-state-pension/how-its-calculated

Annual increases

The new State Pension increases each year by whichever is the highest:

• earnings – the average percentage growth in wages (in Great Britain)
• prices – the percentage growth in prices in the UK as measured by the Consumer Prices Index (CPI)
• 2.5%

If you have a protected payment, it increases each year in line with the CPI.

lindabea

Thank you Zagfles - that answers my question. I read that the state pension this April will be increased by 2.5%, but in the article,I was reading, it made no mention of what happens to the protected amount.

neilvw

The relevant figure for the April 2017 uprating in the protected amount, and SERPS/S2P, is 1.0% (CPI inflation in September 2016).

http://researchbriefings.parliament.uk/ResearchBriefing/Summary/CBP-7818