🇬🇧 Andy Burnham
State pension £1,000 a year update as Andy Burnham announces triple lock change
What happened
The triple lock policy will be adjusted, keeping only the 2.5 per cent and inflation links. Every year, pensioners will receive an increase in line with inflation, and if that is low, they will receive 2.5 per cent. The policy will ensure that the pension will never dip below 30 per cent of the average wage.
Why it matters
The change will affect future state pension payments, with payments rising by "less than they would have done" under the old rules. This will result in payments being about £1,000 a year per pensioner lower by 2040 compared to the old rules.
Key facts
- The state pension triple lock policy will change in 2030, removing the average earnings figure from the calculation of annual increases
- Payments will rise by at least 2.5 per cent every year
- Pensions will be at least 30 per cent of the average wage
- Payments will be about £1,000 a year lower by 2040 compared to the old rules.
Context
The UK government has made changes to the state pension age and tax exemption in recent years, with the qualifying age rising to 67 and plans for tax exemption for those with only the full state pension.
Topics
Publisher evidence used
Reporting attributed to cambridge-news.co.uk. WorldLeadersNews links readers to the publisher and does not present a headline-only item as a full article analysis.
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