Return of the triple lock

Rishi Sunak has confirmed in his economy update, given to the House of Commons on 26 May 2022, that the triple lock will apply to the uprating of state pensions in April 2023.  

Both the Basic State Pension and the Single Tier State Pension are required by legislation to increase in line with any increase in national average earnings, but for a number of years the Government has applied a triple lock measure of the highest of the increase in earnings, the increase in prices (as measured by the CPI) and 2.5%. 

According to new analysis from the Resolution Foundation: Back on target: Analysis of the Government's additional cost of living support benefits and the State Pensions will see their largest increase in 32 years, with the Chancellor's pledge to increase both state payments by the inflation rate this September expected to cost around £15bn. The analysis found that this will equal a rise of around 9.5% from next April, a higher increase than any single year since 1991. 

To find out more about recent updates to the triple lock which were announced in April, click here to read our article 'UK Pensions ‘Triple Lock’ to make a comeback'.

For more information about pension planning, watch back our retirement webinar ‘Planning a comfortable, not taxing retirement?’ or get in touch with a TPO adviser. 

The information in this article is correct as of 23/06/2022.