Triple Lock” Delivers a Welcome Boost Starting April 2024
Our State Pensions are getting a significant boost thanks to the “Triple Lock” system. Starting April 6th, 2024, you can expect an 8.5% increase in your weekly payments, a welcome announcement by Chancellor Jeremy Hunt.
This means more money in your pocket every four weeks. For those receiving the full new State Pension, this translates to a weekly increase to £221.20. Those on the full old State Pension will see their payments rise to £169.50 per week.
Wondering what the “Triple Lock” is all about? It’s an ingenious system that guarantees an annual increase in the State Pension, based on whichever of these three factors is highest:
- Inflation: Measured by the Consumer Prices Index (CPI) in the previous September.
- Earnings Growth: Based on the average wage increase across the UK.
- Minimum Guarantee: A guaranteed minimum increase of 2.5%.
In this case, the 8.5% earnings growth outpaced the other two factors, leading to this substantial increase for retirees.
This is excellent news for retirees facing rising living costs. The “Triple Lock” system ensures your State Pension keeps pace with economic changes, offering you some much-needed financial security.