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Mar 30, 2022

Pension triple lock confirmed by Chancellor

Chancellor Rishi Sunak has confirmed to the Treasury select committee that the pensions triple lock will apply as normal in 2023/24.

This would mean an increase of around 7.4% based on the expected level of CPI for this September.

Work and Pensions Secretary Thérèse Coffey had previously spoken about the triple lock return in a backbench business discussion after the Spring Statement.

The Government originally announced the suspension of the triple lock for 2022/23 in September 2021 over fears of an 8% increase which would cost £3 billion to the exchequer.

Although this is welcome news to pensioners, the recent changes to National Insurance contributions (NICs) will also affect pension contributions.

As pensions are on a pay-as-you-go basis through NI earnings, the higher threshold will mean lower National Insurance receipts and less available money to pay state pensions.

Steve Cameron, director of pensions at Aegon, said:

"The Chancellor has given state pensioners further assurances that next April, they'll benefit from the full state pension triple lock.

"The work and pensions secretary had already made a similar commitment, but pensioners will be relieved to hear this repeated by the Chancellor who ultimately holds the purse strings."

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