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State pension increase cold comfort as pensioners brace for energy bill surge

by maria
gawdo
  • CPI inflation is 3.1% for September 2021 down from 3.2% in August.
  • Today’s data could increase the new state pension from £179.60 per week to £185.16 For those on basic state pension the increase is from £137.60 per week to 141.86
  • The triple lock aims to increase the state pension in line with the highest of 2.5%, CPI inflation and earnings every year.
  • This year government announced they would suspend the earnings element of the triple lock after earnings data spiked as people returned to work after furlough.
  • If earnings data had been used pensioners would have been in line for an increase of around 7%.

The ONS has released CPI inflation figures for September Consumer price inflation, UK – Office for National Statistics

Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown:

“The 3.1% increase was a touch under what many expected and will come as cold comfort to pensioners bracing themselves for soaring energy bills this winter. If the triple lock had not been suspended pensioners would have been in line for a blockbusting state pension increase of around 7%.

While many pensioners have other sources of income to fall back on the state pension still forms the backbone of many peoples’ retirements and too many are wholly reliant upon it. In addition, not everyone receives the full amount with recent HL analysis showing more than 2m pensioners get less than £100 per week in state pension. While working households will also need to prepare for rising bills pensioners will be particularly vulnerable to these increases.”

State pension increases since introduction of the triple lock

Year Factor Increase (%)
2011/12 RPI 4.6
2012/13 CPI 5.2
2013/14 2.5% 2.5
2014/15 CPI 2.7
2015/16 2.5% 2.5
2016/17 Earnings 2.9
2017/18 2.5% 2.5
2018/19 CPI 3.0
2019/20 Earnings 2.6
2020/21 Earnings 3.9
2021/22 2.5% 2.5
2022/23 CPI 3.1

Source: House of Commons Library briefing paper: State Pension Triple Lock

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