Chancellor Rishi Sunak announced an emergency support package to help households across Britain cope with increasing energy bills and soaring inflation last month. Mr Sunak unveiled a £15billion support package to help low-income, disabled and pensioner households as well as increasing the energy bill levy to £400 for all households as well as promising to reinstate the triple lock.
Do you think the state pension should rise by the triple lock next year?
When announcing the additional support Mr Sunak reiterated his pledge to reinstate the triple lock.
The triple lock sees state pension payments increased by the highest rate of wage growth, inflation, by or 2.5 percent.
However, Mr Sunak decided to suspend the triple lock scheme this year in April 2023.
The absence of the triple lock meant the state pension rose just 3.1 percent in line with inflation from September 2021.
However, inflation is currently at a 40-year high and is expected to rise to ten percent over the coming months.
After a one year suspension, the triple lock will be reinstated as it forms an essential component of the state pension payment system.
Emma Byron, managing director for Legal & General Retirement Solutions, explained: “As the cost-of-living crisis continues to bite, this decision is good news for the many people who rely on the state pension to meet their income needs.
“It does, however, serve as a strong reminder that the state pension is hard to predict.
“As a result, consumers should ensure they’ve made their own private savings provisions too, in order to ensure a good standard of living in retirement.
“We’ve seen an uptick in people withdrawing from their personal pensions early and at higher rates, potentially because incomes are under pressure.
“This is something we are monitoring closely but hopefully the reinstatement of the ‘triple lock’ will provide some reassurance and help people struggling to make ends meet.”
So what do YOU think? Should the state pension should rise by the triple lock next year? Vote in our poll and leave your thoughts in the comment section below.
Do you think the £300 one-off payment for pensioners enough?
Over eight million of the 12.4 million pensioner households in the UK will benefit from a £300 support payment to help combat the rising cost of living.
Pensioners in receipt of the Winter Fuel Payment will be able to receive the £300 payment to help them cover rising energy costs over the winter.
The Winter Fuel Payment is an automatic benefit for pensioners born on or before September 16, 1955.
The additional £300 will come as a top-up to the annual Winter Fuel Payments in November and December.
The UK Government said: “Pensioners are disproportionately impacted by higher energy costs, and many low-income pensioner households do not claim the means-tested benefits they are entitled to.
“This payment will go to the over eight million pensioner households who receive the Winter Fuel Payment.”
The extra £300 payment combined with the £400 energy bill discount and £150 council tax rebate means pensioners will receive an additional £850 in financial support.
However, for some additional benefits from Mr Sunak’s support could add up to £1,500.
Steven Cameron, a pensions director at Aegon, said: “Those receiving state pensions will be relieved to hear the Chancellor announce new targeted support measures to help them with the cost of living squeeze this winter.
“The Government states low-income pensioner households could receive a total of £1500 in additional one-off support payments this year.
“Of this, £650 will be paid to those receiving pension credit, so it becomes more important than ever that those eligible for this benefit make sure they claim it.
“If not receiving Pension Credit, the additional support adds up to £850.
Caroline Abrahams, charity director at Age UK welcomed the announcement, saying: “Age UK is pleased and relieved that the government has recognised the extreme risks soaring inflation pose to the health and welfare of pensioners, particularly those on low incomes, and has announced a package of measures today with the aim of mitigating them.
“With prices continuing to go up for everything they buy, life is certainly not going to be easy for many older people over the next few months, but the extra support the Chancellor is bringing forward will make a difference and will protect most from the worst of the unprecedented surge in the cost of living they face.”
So what do YOU think? Is the £300 one-off payment for pensioners enough? Vote in our poll and leave your thoughts in the comment section below.