State Pension Triple Lock Under Threat

State pensions are due to increase in April 2023 with the reintroduction by Rishi Sunak of the Triple Lock.  The Triple Lock means increases based upon the higher of:

• Earnings inflation
• Consumer Prices Index (September 2022)
• 2.5% pa

Last year, pensioner did not get the CPI increase but it is due back this year.  CPI in September will be announced on 19 October as is expected to be around 10% pa.  When questioned on the BBC on Thursday, Chris Philp, Secretary to the Treasury, refused to confirm that the State Pension will be increased by the higher of the Triple lock in April 2022.  He kept saying that they will wait for reports from the Office for Budget Responsibility.

Comment

We suggest pensioners should plan for the worst.  Earning as not increasing at the same rate and the government gamble that inflation would fall has failed.  The Bank of England did not take action early enough or aggressive enough to reduce inflation.