Money Wellness
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category iconcost of living
calendar icon08 Apr 2024

State pension rises by 8.5% today- what is the triple lock?

The state pension is rising today by 8.5% because of the triple lock.

 This essentially means that pensioners receive an amount designed to keep up with rising prices or wage increases.

This increase is the second-ever largest rise in the state pension rate.

An 8.5% rise would see payments rise by:

  • £221.20 per week for the new State Pension (up from £203.85)
  • £169.50 per week for the basic State Pension (up from £156.20)

What’s the state pension?

The state pension is a regular payment from the government that most people claim in later life.

State pension comes in two tiers – the basic state pension and new state pension.  

The basic state pension is paid to those who reached state pension age before April 2016, and the new state pension is for those who reached it after April 2016.

Men and women born between 6 October, 1954 and 5 April, 1960 start getting their pension at the age of 66.

 But for people born after this date, the state pension age is increasing:

  • a gradual rise to 67 for those born on or after 5 April, 1960
  • a gradual rise to 68 between 2044 and 2046 for those born on or after 5 April, 1977

If you claim the state pension, you may also be entitled to pension credit and other associated benefits to top up your income.

What’s the triple lock?

The triple lock is a government guarantee that state pensions grow each year in line with whichever is the highest out of the following three measurements:

  • The average growth measured from May to July compared to the previous year
  • The consumer prices index (CPI) measured in the year from September
  • Or 2.5%

In its 2019 election manifesto, the Conservative party said it would keep the triple lock in place for the duration of this parliament, which ends in 2024.

The triple lock may be even more important to future generations. Younger people are less likely to have the security of financial salary workplace pensions and will be more dependant on other sources of income (including the state pension).

 

Avatar of Lydia Bell-Jones

Lydia Bell-Jones

With a background in banking, Lydia has been writing professionally for over five years. She is passionate about helping people improve their personal finances and has a particular interest in the connection between money and mental health.

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