UK state pensioners are angry that, despite the increase in Triple Lock payments, they will still suffer a real loss of income due to the rising cost of living under the new Labour government.
Almost 500,000 state pensioners meanwhile will not be able to claim the promised £475 payout next year as has been billed and further aggravate such adverse conditions.
The country has continued the Triple Lock system which ties the increase of pensions to the growth in average earnings, the rate of inflation or 2.5%, whichever is the highest. The government has projected an increase of 4.1% which is in line with the increase in average earnings.
This will increase the full new state pension to £230.30 a week, an increase of £9.10. However, this will be an increase that occurs as pensioners are deprived of the Winter Fuel Payment which is of great assistance during the cold months
Loss of Winter Fuel Payment Worsens Financial Outlook
Richard Parkin, head of Retirement at BNY Investments, highlighted the issue: “The Triple Lock is designed to prevent pensioners’ living standards from falling behind workers. The loss of the Winter Fuel Payment represents a real hit to income, regardless of personal wealth.”
Parkin observed that elderly pensioners with lower state pensions often do not benefit from the increase in the Triple Lock, as it fails to offset the loss of Winter Fuel Payment – particularly at this time of rising inflation.
He further expressed optimism that perhaps there could also be an increase in Pension Credit along with state pensions, stressing however that such issues will only be clear in the next Budget.
Impact of Rising Costs and Energy Bills on State Pensioners
Greg Marsh, the CEO of Nous.co, an AI savings platform, stated that many pensioners will practically see the increase in the Triple Lock considerably wiped out by the absence of the payment for Winter Fuel. He emphasized that many will barely make it to winter when it comes to bill payments and urged many to look for how they can save.
Marsh advised pensioners to review their energy bill arrangements: “Households that pay by direct debit can save around £100 annually compared to those paying by cash or cheque.” He also encouraged switching providers to secure better rates, noting that most households are not on fixed deals and could save £150 on energy bills with platforms like Nous.co.
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Mrs Reeves hasn’t noticed the £ 1.25 per Week that over 80s get!!!
They also need to consider that many pensioners with a very small private pension, mine is £850 pa. Will be forced to pay tax
The triple lock doesn’t benefit pensioners anyway,because of the tax threshold which hasn’t changed for years whatever DWP give us on State Pension is immediately grabbed back by HMRC if we have a private pension,a win win situation for the Labour government with a Tory Prime Minister who won’t introduce a wealth tax as it will affect himself,his pal Rishi and his wife who make millions while we as pensioners all suffer to bail out the government lies and funds,I am dreading the budget,how low can we as an elderly community be treated.