State pensioners set to miss out on another bumper triple lock boost
Furious OAP rages at triple lock broken promise
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The triple lock ensures the state pension rises each year by whichever is the highest of 2.5 percent, inflation or average earnings. This year, it is expected pensioners will be in line for a substantial rise if the policy is upheld.
Inflation in the year to September was recorded at 10.1 percent, the measure typically used for the mechanism.
While this is likely to represent good news for pensioners if it goes ahead, the bumper increase is unlikely to be replicated once again.
Another year of double-digit pay rises is now no longer certain, given forecasts for inflation have now reduced.
Yesterday, the Bank of England announced it would raise its Base Rate to three percent in efforts to tame rampant inflation.
However, it simultaneously stated fears about the future of inflation were not as bad as originally perceived.
A statement from the Monetary Policy Committee (MPC) added: “What will happen to interest rates will depend on what happens in the economy.
“At the moment, we expect inflation to fall sharply from the middle of next year.”
It is now expected inflation will drop to approximately 7.9 percent in the autumn of 2023.
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The central bank then expects inflation to fall to around five percent by the end of 2023.
It will be good news as the price of energy is not expected to rise so rapidly, meaning people can begin to get a handle on their bills.
However, for those banking on another bumper increase to the state pension next year, there is likely to be disappointment.
While a lower figure will prove less expensive for the Treasury, it will not do much to alleviate the concerns of older people.
There are also worries in the present, as some have suggested the triple lock this year is under threat as the Chancellor seeks to balance the books.
Former Prime Minister Liz Truss vowed she would uphold the policy, but as her tax plans were torn up by Jeremy Hunt, many are fearful the triple lock could go the same way.
In recent weeks, both new Prime Minister Rishi Sunak and Mr Hunt have failed to commit to the longevity of the policy.
In Prime Minister’s Questions this week, the SNP’s Westminster leader Ian Blackford MP asked whether the triple lock would continue.
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In response, Mr Sunak said: “We do have an excellent new Chancellor, I’m looking forward to his Autumn statement in a couple of weeks.
“It wouldn’t be right to comment on individual policy measures before then.
“But I think everyone knows we do face a challenging economic outlook and difficult decisions will need to be made.”
Mr Hunt also said he would not be commenting on the matter before the Autumn statement.
It means pensioners will be forced to wait until November 17 to gain more clarity on the situation.
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