State pension rise plans slammed: ‘Protection of pensioners is crazy’ | Personal Finance | Finance

The state pension is set to rise by 10 percent next year as the Government looks to give pensioners a rise in line with inflation. The triple lock policy, which was suspended for a year, will be brought back – meaning pensions will increase with inflation, average earnings or a flat rate of 2.5 percent. April 2023 is when the rise will come into effect, based on the reading of the consumer price index (CPI) this coming September, when it is expected to reach 10 percent. Last year the state pension was set to rise by over eight percent, in line with surging average wages following the pandemic.

But the Government deemed this unfair, taking out the average earnings figure, leaving people with just a 3.1 percent increase.

State pension recipients will welcome such a big increase next year, but a former Tory Minister has criticised the move.

Jim O’Neill, the former Goldman Sachs chief economist who served as a minister under George Osborne, said it was “crazy” to protect pensioner incomes while younger people’s wages were being eroded by the highest inflation rates for 40 years.

Speaking to BBC Radio 4 last month, he was asked why pensions were rising in line with inflation when ministers were urging public sector pay restraint

He said: “I have no idea. It seems to me pensioners, given the pressure on fiscal policies and inequalities, the constant protection of pensioners seems ludicrous in itself and in these circumstances particularly crazy.”

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Unison’s head of health Sara Gorton said: “With inflation expected to go even higher this week, reports of a five percent wage rise won’t go down well with struggling NHS staff.

“The public understands an above-inflation pay increase is needed or fed-up health workers won’t hang around.

“If the staffing exodus continues, waits for ambulances, operations and other treatments won’t reduce.

“The Government says it’s committed to the NHS, but a pay increase falling far short of prices won’t take the heat out of the staffing crisis.

“Ministers must avoid stumbling into an unnecessary dispute by giving a fair pay rise that protects patients and the NHS too.”