However, Wednesday’s announcement that inflation would be 3.2 percent for the year ending August 2021 shattered this record.
The triple lock on state pensions requires that the pension value rise by at least three factors: inflation, average earnings growth, and 2.5 percent.
Due to the unusually high earnings growth in the aftermath of COVID-19, the state pension increase for the next year would have been higher than usual.
The Government therefore decided to stop the average earnings component of the triple lock in the 2022/23 fiscal year. This would have resulted in a state pension increase of eight percent.
Publited at Wed 15 Sep 2021, 06:54:00 +0000