Triple lock: Huge support for 10 percent state pension increase | Personal Finance | Finance


State pension: Carole Malone criticizes rate for OAPs

Prime Minister Boris Johnson vowed to re-introduce the state pension triple lock last week, just a year after its suspension. This means pensioners will see their payments rise by more than 10 percent in 2023 as the scheme guarantees an increase to state pension by the highest figure out of average earnings, inflation or 2.5 percent.

Those receiving a full state pension of £9,628 can expect an increase of almost £1,000 as the inflation rate is due to hit 10 percent in September.

READ MORE: Triple lock reinstated in a major state pension boost – how much of your payments will be

The triple lock allows pensioners’ income to keep in line with workers’ earnings but was suspended in 2021, following a higher rise in wage inflation due to the pandemic.

Bank of England and economists have warned that pension increases in line with inflation risk fueling further price rises.

Huge support for 10 percent state pension increase — ‘Been lagging behind for years!’ (Image: Getty)

The announcement comes as public sector workers, including striking rail staff, took industrial action over their pay, pensions and working conditions.

Mr Johnson told his Cabinet last week: “It is right that we reward our hard-working public sector workers with a pay rise, but this needs to be proportionate and balanced.

“Sustained higher levels of inflation would have a far bigger impact on people’s pay packets, in the long run, destroying savings and extending the difficulties we’re facing for longer.”

As a result, Express.co.uk asked readers whether it was fair for the triple lock to be reinstated despite the Government insisting public sector receive below-inflation pay rises.

Pensioners

Some pensioners can expect an increase of almost £1,000 (Image: Getty)

In a poll that ran from midday on Wednesday, June 22, to 10am on Wednesday, June 29, Express.co.uk asked: “Is it fair for the state pension to increase 10 percent next year?”

Overall, 3,551 people responded with the dominant response – gaining 96 percent (3,406 people) of votes – being “yes”, the increase is fair.

Meanwhile, three percent (118 people) answered “no”, the increase is not fair, while just one percent (27 people) said they did not know.

Dozens of comments were left below the accompanying article as readers shared their thoughts on the state pension increase.

A majority of readers were in favor of the reintroduction of the state pension triple lock, with one reader, username Teenyme writing: “State pension is not even equal to the living wage.”

Another, username Knobituk, said: “Pensioners are on a fixed income with no option to earn more money so yes their pensions should go up.”

Username Justmypointofviewok, meanwhile, wrote: “State pensions have always been underfunded by all Governments, if you have worked all your life and paid into the system you deserve more.”

And username L65 said: “Yes, been lagging behind for years. Nowhere near minimum wage and most of these people have worked hard all their lives. Deserve to be looked after.”

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The 10 percent increase to the state pension will be introduced in April 2023 (Image: EXPRESS.CO.UK)

Others, however, commented that the 10 percent increase to the state pension was not enough.

Username Elite said: “Pensioners get a pittance as it is so 10 percent is nowhere enough and won’t make a huge difference. They should be on a minimum of at least £400 per week.”

Username Emmanuel Goldstein said: “10 percent sounds a lot but it’s 10 percent of a small sum.”

Username BobPage said: “For a growing number of people the state pension is their only source of income, it should keep pace with inflation.”

And username DavidCohen2 wrote: “Of course it isn’t fair. 10 percent is hardly enough, especially with another massive energy increase on the way.

“Some pensioners have seen almost no meaningful increase this year and need a decent amount to live a reasonably worthwhile life.”

The triple lock is due to be re-imposed next April, and some readers commented that this should be brought forward.

Username corkhead said: “By the time this gets activated a substantial percentage of pensioners will be on the actual bread line.”

Username skipper wrote: “Is it fair to increase it next year, no! It needs to be increased this year.”

And username pessimisticmiss said: “We have been treated disgracefully, and we should not have to wait until next April for which should rightfully be ours, now, anyway!”

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