The earnings growth measure of the Triple Lock is currently the highest factor of the uprating policy.
The latest figures from the Department for Work and Pensions show that 9.7 million people on the Basic State Pension currently receive up to £169.50 each week, equivalent to £678 every four-week payment period. Weekly payment rates are set to rise next April as part of the DWP ’s annual uprating exercise.
Similarly, 2.6m people on the New State Pension could see payments rise from £221.20 per week to £231.15, some £924.60 every four-week pay period. Helen Morrissey, head of retirement analysis, Hargreaves Lansdown, said: “Wage growth remains robust, so it’s highly likely that next month’s figure will be the one used to uprate State Pension under the Triple Lock. This month’s figure comes in at 4.5 per cent - way down on last month’s 5.7 per cent, but it has been affected by the payment of one-off bonuses in the NHS last year.
Ms Morrissey also explained how the freeze on the Personal Allowance at £12,570 is going to push even more pensioners closer to the tax threshold. Latest State Pension News Steven Cameron, Pensions Director at Aegon, said the NHS bonus paid last year is expected to “suppress the figure due to be announced next month” but added that it is “highly likely that the increase will be based on earnings growth”.
He also highlighted how 10 million pensioners will miss out on at least £200 in Winter Fuel Payments this year. He said: “While next April’s State Pension increase is likely to be higher than current inflation, any increase in ‘real’ terms will be significantly dented by the loss of the Winter Fuel Payment.”
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