Whether it’s to do with it being National Payroll Week, the government have chosen this week to make a number of important announcements including chances to the calculation of the State Pension. It confirmed this week that the current method of calculation using the Triple-Lock which was brought in during the coalition government will end this year and no longer be used for 2022/23 onwards.
This current method means the state pensions rise by inflation, wage growth, or 2.5%, whichever is the highest. The reason for the change is because of the unusual pay situation due to COVID-19 which would have meant under the current scheme the increase would have been incredibly high with a possible increase of 8% and as such for 2022/23 for one-year pensions will rise by 2.5% or in line with inflation.
The Triple-lock will then return for 2023/24.
