5th January 2023
Chancellor Retains State Pension Triple Lock Conclusion
The Chancellor confirmed in the 2022 Autumn Statement that the triple lock will be reinstated on April 6, 2023. This means that the State Pension will rise in line with the inflation rate of 10.1% in April 2023/24. The triple lock will benefit anyone receiving the State Pension. To make the guarantee even more secure, it included three separate measures of inflation, hence ‘triple lock’. The three-way guarantee stated that the State Pension would be increased by the greatest of three measures each year: average earnings, prices as measured by the Consumer Price Index (CPI), and 2.5%. Usually, the government compares the three rates in September before implementing the correct increase the following April.
The State Pension triple lock has proven to be a burden for successive governments, as well as a financial burden for taxpayers. Because people earned much less during the 2020 lockdowns, there was a significant increase in average earnings of 8% when people returned to work in 2021. The government announced that the triple lock would be reinstated for the tax year 2023/24.
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