Fury as most pensioners won’t benefit from £1,000 state pension hike next year – ‘treacherous’ | Personal finance | Finance

Express.co.uk readers feel cheated as they struggle to make ends meet, while being told they are headed for a bumper pay rise they won’t see in full .

Life will continue to be a struggle for them, as food and energy bills soar, while talk of a more than £1,000 increase in the state pension has led to claims that retirees are spoiled.

Under the triple lockthe state pension increases each year based on earnings, inflation or 2.5%, whichever is greater.

While consumer price growth hit 10.1% in July and will hit 13% in the fall, the September inflation figure will determine what pensioners will receive in April 2023.

This will give pensioners their biggest ever raise, but many of those who retired before April 6, 2016 with the old basic state pension will still feel badly treated.

That’s because it currently only pays £7,376.20 a year, for those who qualify for the maximum amount (others get even less). Even if it increased by 12%, they would still only receive £8,261 a year, which would still leave them watching every penny.

Express.co.uk reader Homer1952 wrote to condemn claims that retirees would get a handsome pay rise. “Stop, stop, stop this nonsense. Why is 10% of a pittance huge? »

Homer1952 added that next year’s increase will not offset this year’s sub-inflationary 3.1% rise, due to Chancellor Rishi Sunak’s decision to break a Conservative Party manifesto pledge and suspend the triple lock.

If Sunak had applied the triple lockdown this year, retirees would have instead gotten a pay rise of around 8.3%, in line with earnings.

Homer 1952 said, “Pensioners will never get back the five percent that was stolen from us this year.”

Reader Polnud agreed. “[This] does not make up for the treacherous cancellation of the triple lockdown this year!!!!”

READ MORE: Severe warning from the owner about the cost of waiting for electrical appliances

A 12% increase is worth £1,155 a year for a pensioner on the new maximum state pension, but only £885 for someone on the old basic state pension.

This in practice means their pay rise is £270 lower.

Express.co.uk reader concerned British citizen said many would receive as little as £15 per extra week from next April. “While the percentage [increase] may seem high, the real value of this is low!”

Another reader, Tomsky, called the two-tier system unfair and in urgent need of an overhaul: “What’s wrong with giving the same amount to all pensioners? Do older retirees need less food, less heating, and all bills cheaper? Just bring one payment for all.

Reader Skipper pointed out that most pensioners desperately need a pay rise today, not next year, and added: “The two-tier pension should be abolished so that all older pensioners get a fair treatment.”

Skipper also pointed out that many retirees are living off their savings and their purchasing power is being eroded by inflation. “It’s tough business after a lifetime of hard work.”

Source link

Denial of responsibility! newsnaveen.online is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – admin@newsnaveen.com. The content will be deleted within 24 hours.

Similar Articles

Most Popular