Millions of retired people set for bank account boost
The state pension will be rising again next year.
Millions of state pensioners are set for a £236 boost next year, according to latest forecasts.
The triple lock policy ensures pension payments increase every year.
While the exact amount won’t be known until later this year, the Government has a forecast it bases its planning on.
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Based on those forecasts, the state pension is currently set to rise by 2.5% next April.
This would result in weekly payments of £236 for those on the new state pension, up from the current £230.
Annually, the rate would go from the current £11,973 up to £12,272.
Everyone who retired after 2016 is on the new state pension, while those who are older are on the basic state pension.
Earlier this year, the state pension increased by 4.1%, which was close to the Government’s forecast of 4%.
The triple lock ensures the rate increases each year to match whatever is highest out of inflation, wage growth or 2.5%.
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Rises kick in at the start of each financial year in April.
If the Government’s forecast is correct it will mean the state pension will remain under the personal allowance income tax threshold for now, which is frozen at £12,570.
However, more people with small private pensions or other income streams could face being dragged into paying tax.
It comes as leading economists are calling for the triple lock policy to be scrapped in its current form, arguing it is too expensive and there needs to be a re-think over annual pension rises.
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