8 C
New York

Half 1,000,000 pensioners will miss out on ‘biggest state pension increase ever’ | Personal Finance | Finance

Published:

Chancellor Jeremy Hunt set out within the Autumn Statement that the triple lock pledge will apply next 12 months. The policy guarantees the state pension increases in step with the very best of two.5 percent, the rise in average earnings or inflation.

The return of the policy means the September figure for inflation, at 10.1 percent, can be the idea for increasing payments next April, with the total recent state pension to go as much as greater than £200 per week.

Mr Hunt hailed the payment boost because the “biggest ever money increase” for the state pension, which many older Britons depend on.

But lots of of 1000’s of pensioners will miss out on the income boost as their payment amount is frozen.

Those that live in certain parts of the world don’t get the rise, with their sum frozen at the quantity it was once they left the UK or one in all the eligible areas.

READ MORE: Capital gains tax threshold is halved and tens of 1000’s can be hit for first time

State pension increases are only guaranteed in the next places:

  • The UK
  • European Economic Area (EEA)
  • Gibraltar
  • Switzerland
  • Countries with a social security agreement with the UK – but not Canada or Latest Zealand.

DON’T MISS

Pensioners on the total basic state pension may also get a payment boost with their payments increasing from £141.85 per week to £156.20.

Steven Cameron, Pensions Director at Aegon, warned the policy may not last for much longer.

He said yesterday: “Today’s confirmation of honouring the triple lock for 2023/24 means pensioners can breathe an enormous sigh of relief after a white knuckle roller coaster ride of past disappointments, recent guarantees and a series of U-turns.

“But next 12 months’s increase could possibly be its ‘last gasp’ as the present formula is looking increasingly unsustainable.

“Financially, it won’t have been a straightforward decision for the federal government seeking to fill a £50billion fiscal black hole – each one percent increase within the state pension costs around £0.9billion a 12 months.

“And this isn’t paid for out of some fund built up up to now but from the National Insurance paid for by today’s employees.

“Honouring this Manifesto commitment after ditching it last time round will provide much-needed support for pensioners, a lot of whom are on low and stuck incomes and particularly vulnerable to rampant inflation.”

sportinbits@gmail.com
sportinbits@gmail.comhttps://sportinbits.com
Get the latest Sports Updates (Soccer, NBA, NFL, Hockey, Racing, etc.) and Breaking News From the United States, United Kingdom, and all around the world.

Related articles

spot_img

Recent articles

spot_img