New Energy Price Guarantee impact on State Pension increase 2023?

dealyboy

Liz Truss confirmed recently that she would retain the triple lock, which would mean this month's annual CPI figure would normally be the determining factor. However it has also been stated that the new energy cap would reduce inflation by 4 or 5 percent.

I presume the EPG does not directly affect September's CPI as it starts in October, but there could be considerable pressure to discount the 2023 state pension CPI increase by say 5%.

What do people think?

Grumpy_chap

If she said Triple Lock staying, it will just happen that way.

EPG will yield results through lower inflation next year.

Dazed_and_C0nfused

That we'll know the CPI figured in due course.

It's unlikely to make much if any difference to the September 2022 rate and a lot can happen between now and September 2023.

Whatever happens the standard new State Pension is likely to be over £205/week from April 2024.

MK62

...it may be at that level come April 2023......(though I suspect your "April 2024" is a typo tbh... )

Dazed_and_C0nfused

MK62 said:

...it may be at that level come April 2023......(though I suspect your "April 2024" is a typo tbh... )

I was estimating 9% then 2.5% so it was 2024 😊

MK62

Dazed_and_C0nfused said:

MK62 said:

...it may be at that level come April 2023......(though I suspect your "April 2024" is a typo tbh... )

I was estimating 9% then 2.5% so it was 2024 😊

Fair enough...😉

Dazed_and_C0nfused

MK62 said:

Dazed_and_C0nfused said:

MK62 said:

...it may be at that level come April 2023......(though I suspect your "April 2024" is a typo tbh... )

I was estimating 9% then 2.5% so it was 2024 😊

Fair enough...😉

But it could just as easily be 10% and 5.5% which would take us to virtually £215/week 😳

Merlin139

I am betting that whatever CPI rises to in Aug (announced 07:00 on 14th September) it will go down for the Sept CPI rate (announced 07:00 19th October) Both release dates confirmed. (Amended because of Bo Bo)

In Jul 22 CPI Electricity, Gas and other fuels made up 1.87% of the 10.1% rate.

When looking at the CPI figure for Jul 22 I came across this.

The Office for National Statistics aims to complete its classification review of the Energy Bills Support Scheme (EBSS) and whether it affects consumer price inflation statistics this month. Further information is expected to be announced on 31 August 2022

No doubt the Aug CPI statement will have something about the new Energy Price Cap and when the ONS will announce its effect on the CPI figure.

dealyboy

I was thinking that there has been a lot of talk about state pensioners getting a 10% + increase whereas the working population are getting 5-7%, if they're lucky (probably the wrong term). It might just ease the tension a bit with the unions if state pensioners were seen to be in line.

A useful political expedient?

Dazed_and_C0nfused

I think we're past the point that there will be any change to the triple lock system this year (April 2023 rate).

Various Conservative MP's have stated it will be maintained and they, the MP's, know where a large proportion of general election votes comes from 

Merlin139

dealyboy said:

I was thinking that there has been a lot of talk about state pensioners getting a 10% + increase whereas the working population are getting 5-7%, if they're lucky (probably the wrong term). It might just ease the tension a bit with the unions if state pensioners were seen to be in line.

A useful political expedient?

10% increase on £9630 is a hell of a lot less than 5-7% on £25000 to £40000