State Pension To Rise Next Year But By How Much?
The 8.5% rise in the state pension, in accordance with the triple lock guarantee, ensures that pensioners will receive a substantial boost to their income.
The Chancellor, Jeremy Hunt, has announced the exact amount some benefits and the state pension will rise by next year.
His Autumn Statement has pleased some, but is it enough, and is it just so Rishi Sunak has a better chance of winning the next General Election?
The state pension is a vital income for retired individuals who are already struggling with the cost-of-living. The upcoming rise, set to take effect next April, will see the state pension increase by a significant 8.5%. This is great news for pensioners struggling.
Before Jeremy Hunt announced the rise, we spoke to pensioners in Grimsby, Manchester, Lincoln, Blackpool, Scunthorpe, Skegness, and Boston, to see if they believed the Chanceller would stick to the triple lock?
72% said they did not believe Jeremy Hunt would stick with the triple lock, which shows how the Conservative Government, and the Chancellor has surprised people.
This boost aligns with the triple lock guarantee, which was introduced in 2010 to ensure that the state pension rises every April by the highest figure among three factors: inflation (based on the previous September rate of Consumer Prices Index inflation), wages (average growth between May and July), or a minimum of 2.5%.
This year, the highest of these figures is the average wages growth, confirming the 8.5% increase. The Chancellor’s confirmation in the Autumn Statement quelled earlier rumours that suggested a lower figure of 7.8% based on average wages excluding bonuses.
The current value of the full new state pension stands at £203.85 per week, while the old basic state pension amounts to £156.20 per week.
With the upcoming rise, the full new state pension will reach £221.20 per week, and the old basic state pension will rise to £169.50 per week.
Chancellor Jeremy Hunt emphasized the importance of this increase in his speech in the House of Commons, stating, “That is one of the largest ever cash increases to the state pension – showing a Conservative government will always back our pensioners.”
In addition to the state pension, certain benefits will also experience an increase next April. The Treasury has confirmed that these benefits will rise in line with the Consumer Price Index (CPI) inflation for the previous September, resulting in a 6.7% increase.
Earlier reports suggested that the Treasury might consider using the smaller October inflation figure of 4.6% to determine the benefit increase. However, the confirmation of the September CPI inflation figure provides much-needed reassurance to those relying on these benefits.
The benefits that typically rise in line with inflation include:
Attendance Allowance
Employment and Support Allowance
Housing Benefit
Income Support
Industrial Injuries Disablement Benefit
Jobseeker’s Allowance
Maternity Allowance
Pension Credit
Personal Independence Payment
Statutory Maternity / Paternity / Adoption / Shared Parental Pay
Statutory Sick Pay
Tax Credits
Universal Credit
Our readers have had mixed feelings about the Autumn statement. Some pensioners have said they are pleased with the increase, but some have state there should not be two separate pension amounts.
Mark Lawrence from Manchester said: “There should not be two pension amounts where one pensioner gets £156 but another gets £203.”
Some of our readers believe there should be more help for pensioners while others have questioned why the Government is picking on Disabled people and forcing them back into work when the Rishi Sunak is wasting £6million a day housing migrant who have never paid into the system.
It is obvious to many that the Autumn statement is trying to get people onside so Rishi Sunak and the Conservative Party can still in power, but will it work?
Let us know on our official Twitter account https://twitter.com/NewsUKToday
