State Pension decision should only be temporary

Category: Estate Planning, Probate, Wills

You may have seen in the press recently that the Government has announced that the ‘triple lock’ for State Pensions in 2022/23 will become a ‘double lock’.

What does this mean for pensioners?

The triple lock was a Conservative party pledge that the STATE PENSION would increased every year by either:

  • 2.5%,
  • inflation; or
  • the average increase in wages

whichever is the greater.

The average increase in wages for the current year is estimated to be around 8%, which the Government feel is a bit of an anomaly caused, in part, by the furlough scheme.

If State Pensions were to increase by 8% it is estimated that this could cost the Treasury an additional £5 billion.

What does the Government’s decision mean?

Therefore, the Government have said that for this year the state pension will have a double lock, which means it will increase either by 2.5% or inflation, whichever is the highest. 

In real terms, this will mean the basic state pension from next April will go up from £137.60 per week to at least £141.05, and those on the new State Pension will increase £179.60 per week to £184.10, and if inflation is higher than 2.5% this could be more.

Will this change be permanent?

However, this change should only be temporary, and the Government have said that the triple lock will be reinstated from 2024 onwards.

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Get in touch

If you have any questions over how this impacts your estate or Will, please contact our Private Client team at Nash & Co Solicitors in Plymouth. You can reach the team by emailing Alice Carter Tyler at [email protected] or calling 01752 827027. You can also ask us to call you back by filling in the contact form here.