Autumn Statement 2023: Government backs state pension triple lock

In April of next year, there will be an 8.5 percent increase in the state pension. This rise is much higher than the current rate of inflation.

The authorities have announced that the national pension will rise by 8.5% in April 2024, complying with the 'triple lock' rule for pensions, even though there was some demand for the figures to be revised and the raise to be kept lower.

The triple lock rule ensures that the government's pension payments increase every year. This is based on the highest of three factors: the growth of average salaries during May to July, the inflation rate from the prior September, or a fixed percent increase of 2.5%.

The amount of money earned increased by 8.5% this year, which was the greatest growth among three figures. Yet, there were some rumors that the government might modify the data and opt for a lower smoothed wage growth rate of 7.8%, which only takes into account the regular salary without bonuses. Alternatively, they might even remove the earnings factor entirely from the triple lock.

In September 2023, the CPI showed an increase of 6.7% compared to the previous year. In October 2023, it increased by 4.6%. This means that the state pension boost in 2024 will exceed the rate of inflation. The state pension will increase by 8.5%, taking it from £10,600.20 per year to £11,501.22 in April 2024. This is great news for pensioners as their income will rise and help them to keep up with the rising cost of living.

The personal allowance is still stuck at £12,570, which means that lots of elderly folks will now have to pay income tax for the first time in the next tax year. Even though the state pension is going up, it's still not enough to provide a basic standard of living for retirees. The Pensions and Lifetime Savings Association declared that a single pensioner needs at least £12,800 to live decently in their golden years.