Could this be some good news for pensioners at last?
The state pension could rise by an inflation-busting four percent next April. Which would mean pensioners would be better of by hundreds of pounds a year. For anyone who receives the full state pension, they would be £351 a year better off, with payments increasing to £175.35 a week.
At the moment the state pension is protected by a triple lock which was introduced in 2011, which ensures that it increases by at least the same rate as the cost of living. With the lock, the state pension rises either by two and a half percent a year, the rate of inflation or average wage growth whichever is the highest. And because inflation is expected to be a lower figure. so under the triple lock rules would see a big increase next year that outstrips price rises.
Although the news will be welcome for those current state pensioners they come at a significant cost. The state pension is not funded in advance pensions are funded on a pay as you go basis from todays workers National Insurance contributions. Many concerns have been raised about pension triple locks long term sustainability. The triple lock is only guaranteed by the government until 2022.
Source daily mail.