LIZ Truss today committed to protecting the pensions triple lock after previously warning 12 million Brits could miss out on cash.
The Prime Minister today used a Commons showdown to vow those on the new state pension will not be left behind.
She earlier refused to commit to raising state pension payments in line with inflation from April 2023.
The move would have left millions of OAPs missing out on as much as £12,296.94 over the next 20 years.
But in a defiant U-turn, the PM today told MPs: "I am being completely clear – we are protecting the triple lock".
The triple lock ensures that payments rise each year by whichever is highest of the three figures: inflation, wages or 2.5%.
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State Pension could rise by over £972 next year if triple lock returns
Millions on state pension could lose out on £12,296 a year without triple lock
Usually, its inflation figures from September which are used for the triple lock calculation.
These were released today, and showed that inflation has now returned to a 40-year high of 10.1%.
Based on these figures, it means the maximum new state pension would rise from the current rate of £185.15 to £203.85.
Pensioners would get a total of £10,600 a year – a £972.40 increase – when new rates roll out in April next year.
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While the basic state pension would up £14.35 from £141.85 per week to £156.20.
Over the year, that would be an increase of £746.20 to £8,122.40 in total.
Keeping the lock in place will cost £4billion to £5billion, according to AJ Bell figures.
Last year, the triple lock was paused temporarily last year and a "double lock" removed wages when working out the increase.
How much is the current state pension?
Your state pension amount depends on your National Insurance record.
Check your state pension forecast to find out how much you could get and when.
The full new state pension is £185.15 per week.
You’ll be able to claim the new state pension if you’re:
- a man born on or after 6 April 1951
- a woman born on or after 6 April 1953
The full basic state pension is £141.85 per week.
You’re eligible for the basic state pension if you were born before:
- 6 April 1951 if you’re a man
- 6 April 1953 if you’re a woman
What other support is available to pensioners right now?
Millions of pensioners will get a £300 payment in October to help cover the rising cost of heating homes over winter.
Pensioners on the lowest incomes will get a £650 payment along with others on benefits like Universal Credit from July.
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And those with disabilities could be eligible for a £150 payment.
Anyone struggling with higher bills or worried about debt can get help.
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