Fury as most pensioners will not get next year’s £1,000 state pension rise – ‘treacherous’ | Personal Finance | Finance
Express.co.uk readers feel cheated as they struggle to make ends meet, while at the same time being told they are heading for a bumper pay rise that they won’t see in full.
Life will continue to be a struggle for them, as food and energy bills go through the roof, while talk of a £1,000-plus State Pension hike have led to claims that pensioners are being spoiled.
Under the triple lock, the State Pension rises each year by earnings, inflation or 2.5 percent, whichever is highest.
With consumer price growth hitting 10.1 percent in July, and set to top 13 percent in the autumn, September’s inflation figure will determine what pensioners get in April 2023.
This will grant pensioners their biggest ever increase, but many who retired before April 6, 2016, on the old basic State Pension will still feel badly treated.
That’s because it currently pays just £7,376.20 a year, for those who qualify for the maximum amount (others get even less). Even if that rose by 12 percent, they would still only get £8,261 a year, which would still leave them watching every penny.
Express.co.uk reader Homer1952 wrote to condemn claims that pensioners getting a handsome pay rise. “Stop, stop, stop this nonsense. How is 10 percent of a pittance huge?”
Homer1952 added that next year’s increase will not make up for this year’s sub-inflationary 3.1 percent rise, due to Chancellor Rishi Sunak’s decision to break a Conservative Party manifesto pledge and suspend the triple lock.
If Sunak had applied the triple lock this year, pensioners would have got a pay rise of around 8.3 per cent instead, in line with earnings.
Homer 1952 said: “Pensioners will never ever get back the five percent robbed of us this year.”
Reader Polnud was in agreement. “[This] doesn’t make up for the treacherous cancelling of the triple lock this year!!!!”
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A rise of 12 percent is worth a £1,155 a year to a retiree on the maximum new State Pension, but just £885 to someone on the old basic State Pension.
It means in practice their pay rise is £270 lower.
Express.co.uk reader UKconcernedcitizen said many will get as little as £15 a week extra from next April. “So whilst the percentage [increase] might look high the real value of this is low!”
Another reader, Tommski, called the two-tier system unfair and in urgent need of an overhaul: “What is wrong with giving all pensioners the same amount? Do older pensioners need less food, less heating and all bills are cheaper? Just bring one payment for all.”
Reader Skipper pointed out the most pensioners desperately need a pay rise today, not next year, and added: “The two-tier pension should be abolished so all older pensioners get a fair deal.”
Skipper also pointed out that many pensioners live off their savings, and their buying power is being eroded by inflation. “It’s a rough deal after a lifetime of hard work.”
