Here's how much the state pension triple lock and other benefits could rise by in April 2024

MSE_Emily

he state pension could rise by up to 8.5% from April 2024 under the 'triple lock' guarantee, meaning millions of people would receive a weekly increase in payments of up to £17.35. Certain benefits, including Universal Credit, are also expected to rise from next April...

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Here's how much the state pension triple lock and other benefits could rise by in April 2024

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dealyboy

... and 'extra state pension' (from deferment) will rise by tomorrow's September 2023 CPI figure.

edit: September 2023 CPI 6.7% (unchanged).

badmemory

Could possibly may.  That is unless they decide to break their word for the April 2024 rise as they did for the Apr 2022.  As they don't seem to want to get elected they probably will.  I just hope someone comes on tomorow and says look you were wrong.

Dazed_and_C0nfused

badmemory said:

Could possibly may.  That is unless they decide to break their word for the April 2024 rise as they did for the Apr 2022.  As they don't seem to want to get elected they probably will.  I just hope someone comes on tomorow and says look you were wrong.

Wishful thinking there!  I can't imagine it will still even be October when they make a final decision.

A half plausible justification for using 7.8% not 8.5% might take a while to cobble together!

Assuming it's even that generous.

MikeJXE

Yep I'm expecting a rise in April a couple of months after my rent increase 

It will help to pay higher living cost and push me further into paying more tax

I'm 82 and thats the way it is so I'll suck it up in what years I have left but I'm certainly not going to get stressed about it 

pinnks

Well, the legal position is that the pension must increase by "at least" the increase in average earnings.  Trouble is, it doesn't specify the period or methodology to establish what that means.  Historically, it has always been the May to July increase in the preceding year, including bonuses - so 8.5% for the 2024 increase.

If they want to pull another 2022 trick it requires a primary legislation to override the earnings link and make it CPI or something else, so if that comes to pass, I trust everyone will will be writing to the MP to seek their support in opposing such a draconian abuse of power!

Grumpy_chap

badmemory said:

 I just hope someone comes on tomorow and says look you were wrong.

The earliest there is likely to be any kind of announcement will be the Budget which is not far away.

There has been speculation mentioned that the rules may be interpreted differently than in the past.
It is possible that speculation has been put out on purpose to create doubt and so that the Chancellor can proudly pronounce in the Budget how this Government has always been committed to the Triple Lock and he is pleased to confirm the Triple Lock will be applied for the rise in April.

Silvertabby

8.5% includes the one-off bonus to the likes of the NHS.  To be fair, this really isn't a true reflection of average pay rises - 7.8% sounds like a much more accurate figure.

As for the 2022 increase, the salary increase figure was artificially inflated due to those whose salaries had been reduced to 80% (during Covid) being restored back to their original 100%.  Not a true pay rise by any stretch of the imagination, so limiting that year's increase to CPI (being higher than the minimum 2.5%) seemed fair to me.  After all, I'm not aware of any pensioners who had their pension incomes reduced to 80% at that time. 

Spoken as a State pensioner. 

Pat38493

Possibly an unpopular view on a board with many pensioners, but I fail to see why there should be a link between pension increases and average earnings.   Most state pensioners are not working anymore and don’t have to make any continuing contribution to national productivity in order to get the pension. 

I can of course see a strong argument for the state pension to increase with inflation, but not earnings.

MSE_Emily

UPDATE: The ONS has confirmed that September's CPI remains unchanged from August at 6.7%. We've updated the story to reflect this and are continuing to push the Government for if and when any potential rise will be confirmed. Thanks all!

Andy_L

Pat38493 said:

Possibly an unpopular view on a board with many pensioners, but I fail to see why there should be a link between pension increases and average earnings.   Most state pensioners are not working anymore and don’t have to make any continuing contribution to national productivity in order to get the pension. 

I can of course see a strong argument for the state pension to increase with inflation, but not earnings.

State Pension used to be linked to the better of earnings or inflation in the 70s. That was changed to inflation only (which was generally lower at the time) in the early 80s in order to save money.

30+ years of that eroded the SP's value & lead to big rise in means-tested benefits, political embarrassment over "75p pension rises" & made it difficult for those above the breadline to plan how much they needed to save above the SP to maintain  their desired standard of living