Triple lock means that wage growth figure could be used for State Pension rise in 2024 - and new figures have been announced today indicating another big increase
Pensioners could be in for a bumper rise next year after it was announced that the growth in wages has continued to soar. Under the triple lock system pensions go up each April by whichever of these three things is highest: inflation according to the Consumer Prices Index the previous September, average increase in wages across the UK or 2.5%.
This would see the state pension for men born after April 1951 and women born after April 1953 shoot up £901 from £10,600 to £11,501. For those born before this, the full basic state pension will go up £690 from £8,122 to £8,812, the Mirror reported. The rises will take effect in April next year. “Coupled with lower inflation, this means people’s real pay is no longer falling. Unemployment continues to increase in the latest three months. Correspondingly, employment is down, driven by falls among men and the self-employed.
But the record leap in earnings is also likely to raise concerns among Bank of England policymakers over a wage-price spiral and may increase pressure to raise interest rates further as they battle to bring inflation back to its 2% target. The latest wage growth figures are also particularly important, as the total earnings rise is used to determine the “triple lock” guarantee for the state pension – which increases every April in line with the highest of average earnings growth in the year from May to July of the previous year, CPI inflation in September of the previous year, and 2.5%.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How much the state pension could increase in 2024 with the triple lock remaining intactPrime Minister Rishi Sunak has committed to keeping the state pension triple lock intact, despite new analysis showing the policy is costing the Government £11bn a year
Read more »
State pension to increase by 8.3% to £220 a week in 2024 under triple lockThe triple lock will increase by the earnings growth as it was higher than inflation
Read more »
State pension to increase by 8.5% to £220 a week in 2024 under triple lockThe triple lock will increase by earnings growth as it was higher than inflation
Read more »
State pension expected to increase by 8.3% under triple lock after earnings growthThe triple lock is expected to grow by earnings this year, not inflation
Read more »
People on State Pension could find out new Triple Lock uprating this weekONS figures due to be published on Tuesday could be the driving force behind the State Pension pay rise in April.
Read more »