THE STATE pension will increase by £700 for all Brits in April but there are warnings the axe to the ‘triple lock could cost pensioners £500 a year.
Millions of people currently rely on their pension, according to the Department for Work and Pensions (DWP).
Chancellor Rishi Sunak has already axed the triple lock mechanism this year – a move which could cost all pensioners £500 each.
The triple lock increases the State Pension either by inflation, earnings or 2.5 per cent, whichever is higher.
Had the Chancellor implemented this from April, pensioners would have received a pay rise 8.3 per cent, in line with earnings.
Instead, the Department for Work and Pensions (DWP) said it would ‘temporarily suspend’ the earnings element of the triple lock, blaming ‘skewed and distorted’ figures due to the pandemic.
But with inflation set to rise to as much as 7.25 per cent in April, the Chancellor could be tempted to again suspend the triple lock.
While an increase in the pension would protect our most vulnerable against the cost of living squeeze, it would come at a huge cost to the Treasury.
From April 6, the full basic State Pension will rise by £5.55 to £185.15 a week. If that was increased by 7.25 per cent in April 2023, it would climb to £198.52 a week.
