01732897900 info@lwmltd.com

Pension triple lock confirmed by Chancellor

30th March 2022

Chancellor Rishi Sunak has confirmed to the Treasury select committee that the pensions triple lock will apply as normal in 2023/24.

This would mean an increase of around 7.4% based on the expected level of CPI for this September.

Work and Pensions Secretary Thérèse Coffey had previously spoken about the triple lock return in a backbench business discussion after the Spring Statement.

The Government originally announced the suspension of the triple lock for 2022/23 in September 2021 over fears of an 8% increase which would cost £3 billion to the exchequer.

Although this is welcome news to pensioners, the recent changes to National Insurance contributions (NICs) will also affect pension contributions.

As pensions are on a pay-as-you-go basis through NI earnings, the higher threshold will mean lower National Insurance receipts and less available money to pay state pensions.

Steve Cameron, director of pensions at Aegon, said:

"The Chancellor has given state pensioners further assurances that next April, they'll benefit from the full state pension triple lock.

"The work and pensions secretary had already made a similar commitment, but pensioners will be relieved to hear this repeated by the Chancellor who ultimately holds the purse strings."

Ask us about your pension savings.