Zarah ChoudharyMillions of pensioners could now recieve as much as £470 more a year added to their State Pension, as the Government’s Triple Lock takes effect.
This comes alongside the annual uprating of working-age benefits such as Universal Credit, with people receiving those set to receive an extra £150 on average over the course of this year.
Disability benefits such as Disability Living Allowance, Carers Allowance and Child Benefits are also set to increase by the same amount.
The Triple Lock – which guarantees that the State Pension increases annually by the highest of inflation, average earnings growth or 2.5% – now means the basic and new State Pensions are increasing by 4.1%.
In additon the National Minimum Wage and National Living Wag has also increased, benefiting three million eligible workers across the country.
With the National Living Wage increasing to £12.21 for those aged 21 and over and the National Minimum Wage for those aged 18 to 20 seeing a record increase to £10 an hour, three million workers will benefit, with eligible full-time workers set to see an increase in their annual salary of £1,400.
The uprating of State Pensions and working-age benefits will amount to a cash boost of over £6.9bn.
The Government’s efforts to support low-income pensioners has led to 50,000 extra Pension Credit awards since the summer – an increase of 64% compared to the same period last year.
Work and Pensions Secretary Liz Kendall said: “Our ironclad commitment to the Triple Lock gives pensioners across the country the certainty and security they need to live a full life in retirement.
“We are putting more money in people’s pockets and driving up household income as part of our Plan for Change.”
Minister for Pensions Torsten Bell said: “Raising the State Pension and rescuing the NHS – these are this Government’s priorities to give all pensioners the dignity they deserve in their retirement.
“Those who have worked hard throughout their lives, paying into the system, are owed nothing less.
“We’re improving the lives of millions of pensioners through our £7.84bn additional funding for the State Pension this year.
“That means up to £470 extra in pensioners’ pockets from this week and comes alongside our work to boost Pension Credit uptake, and the £26bn we’ve invested in the NHS that has seen waiting lists in England fall for five months in a row.”
Chancellor of the Exchequer Rachel Reeves said: “With today’s increase in working-age benefits, and our ironclad commitment to pensioners through the Triple Lock, we are making the decisions that support those who need it in Britain, putting money into people’s pockets and delivering our Plan for Change.”
