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You may have seen in the press recently that the Government have announced that the triple lock for State Pensions in 2022/23 will become a double lock.
The triple lock was a Conservative party pledge that the STATE PENSION would increased every year by either:
whichever is the greater.
The average increase in wages for the current year is estimated to be around 8%, which the Government feel is a bit of an anomaly caused, in part, by the furlough scheme.
If State Pensions were to increase by 8% it is estimated that this could cost the Treasury an additional £5 billion.
Therefore, the Government have said that for this year the state pension will have a double lock, which means it will increase either by 2.5% or inflation, whichever is the highest.
In real terms, this will mean the basic state pension from next April will go up from £137.60 per week to at least £141.05, and those on the new State Pension will increase £179.60 per week to £184.10, and if inflation is higher than 2.5% this could be more.
However, this change should only be temporary, and the Government have said that the triple lock will be reinstated from 2024 onwards.
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