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Government to reintroduce pension triple lock

After pausing the State Pension triple lock for 12 months during the pandemic, the government has committed to reinstating the policy in April 2023.

The commitment came from Chancellor Rishi Sunak, who confirmed to the Treasury Select Committee that he would increase State Pensions with the pension triple lock from April next year.

The triple lock policy, introduced 12 years ago, ensures that State Pensions rise in line with whichever is highest out of inflation as measured by the Consumer Prices Index (CPI), average earnings or 2.5%.

The triple lock was suspended by the government for the 2022/23 tax year due to its concerns over big post-pandemic rises in average earnings, which would have seen pensions increase by 8%.

As a result, pensions increased by only 3.1% in April 2022 – far below the rate of inflation, which was 6.2% according to the CPI at the time of the uplift.

However, the recommitment to the triple lock could see a rise of 9% next year based on current rates of inflation.

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.”

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