The Conservative party's manifesto promised to keep the triple lock. This increases state pension by the highest of inflation, wage growth or 2.5%. Headline wage growth was 8.5% in May to July 2023, but there is speculation that Government might use a lower figure. The full increase should apply.
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The Government has already reneged on its manifesto when it legislated to increase state pensions by less than the triple lock in April 2022.
The triple lock does not mean that pensioners' total incomes are increasing in real terms. It only applies to state pensions. Many workplace pension increases are capped at 2.5% or 5%. Annuities and Pension Protection Fund compensation are frozen for many.
The triple lock helps keep pensioners' total incomes from falling too far below inflation.
Friday 24th November 2023
The Government has announced plans to increase State Pensions by 8.5% in April 2024, in line with the Triple Lock commitment.
The Government remains committed to ensuring that older people are able to live with the dignity and respect they deserve, and the State Pension is the foundation of state support for older people. The Government has announced plans to increase State Pensions by 8.5% in April 2024, in line with the Triple Lock commitment.
The action taken in 2022 was fair to both pensioners and to taxpayers. In 2020/21, we introduced primary legislation to increase State Pensions by 2.5 per cent, when earnings had fallen, and price inflation increased by half a percent. If we had not taken that action, State Pensions would have been frozen for 2021/22. We then introduced primary legislation to increase the basic and new State Pensions by at least the higher of price inflation or 2.5 per cent for 2022/23. This was a temporary response to exceptional circumstances caused by the pandemic.
In April, the State Pension saw its biggest ever rise, increasing by 10.1%. As a result, the full yearly amount of the basic State Pension is £3,050 higher, in cash terms, than in 2010. That’s £790 more than if it had been uprated by prices, and £945 more than if it had been uprated by earnings (since 2010).
The Government also provides additional support to older people, which includes the provision of free bus passes, free prescriptions, Winter Fuel Payments and Cold Weather Payments.
In 2023-24 we spend over £151.6 billion on benefits for pensioners in GB, 5.9% of GDP. This includes spending on the State Pension which is forecast to be £124.3 billion in 2023-24.
Department for Work and Pensions