State pension payments rise as inflation soars | Personal finance | Finance

Experts expect the September inflation rate, used to set payments from next April, to continue to soar after hitting double digits already.

The new state basic pension, available to those retiring from April 2016, will exceed £200 a week, even at the current rate of 10.1%.

At the current level, the base rate would rise to £156 per week.

Lord Foulkes, Co-Chair of the All-Party Parliamentary Group for Older People, said: “This is a long-awaited increase that will help pensioners catch up with the rising cost of living they have already suffered.

“However, if there is no immediate action to curb rising energy costs, they will fall further behind.”

“We must guard against any attempt to reduce the increase by Treasury pinchers and also reject any attempt to pit other groups struggling to make ends meet for pensioners in an intergenerational battle.”

“While the wealthy have seen their fortunes grow rapidly over the past year, each generation of the poorest in society has seen their standard of living plummet.”

Silver Voices director Dennis Reed said the £1,000-a-year increase would only apply to around 6% of pensioners.

“Almost nine in 10 pensioners are receiving £142 a week or less and even a restoration of the triple lockdown is nowhere near enough to offset soaring food and energy prices.”

“Unless all state pensioners are immediately granted a guaranteed minimum pension of £200 a week, millions will fall into poverty and destitution, and thousands will die of a combination of cold and hunger this winter.

The rise will be calculated according to the triple lock, which is indexed to average incomes and inflation, increasing whichever is higher.

There is also a floor of 2.5% to ensure retirees are protected if other measures fall too low.

The guarantee was introduced by the coalition government and subsequent Conservative governments maintained it until it was suspended for a year as a result of the pandemic.

Liz Truss and Rishi Sunak have pledged to honor the pledge if elected prime minister.

Andrew Tully, Canada Life’s Chief Technical Officer, said: ‘The government has re-engaged in the triple lockdown this year and it would be very brave, if not reckless, for the new Prime Minister to walk away from this deal so early in his entry. active.

“Our public pension system is not generous by any measure, with the UK performing below average as measured by gross replacement rates according to the OECD.”

“But the government is facing pressure from all quarters and for every percentage point added to state pension costs in the region of £900million a year.”

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