MILLIONS of people who receive a state pension are set to get more cash next year.
The amount people get in retirement usually rises each year, and 2023 is no different.
The state pension will rise by whichever is highest: earnings, inflation or 2.5%.
This is known as the pension triple lock, and the government has confirmed that it will return again.
It was paused temporarily last year and a "double lock" removed wages when working out the increase.
That meant the state pension went up in April this year by the rate of inflation, which was 3.1%.
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As inflation is expected to continue rising this year, the state pension could rise by more than 10% next April.
This means the state pension could top more than £10,000 a year for the first time.
Payments usually go up based on the rate of inflation for the previous September.
The new state pension maximum amount is now £185.15, or £9,627.80 a year.
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If inflation hits 10% it could push up state pension payments by an extra £18.52 a week- or around £963. a year.
The yearly state pension would then stand at £10,590 a year.
But if that figures goes as high as 13%, it would go up by £24.12 a week, or £1,254 extra a year.
This would be a total of around £10,900 each year.
A rise would also push up pension credit amounts for the most hard-up pensioners.
Inflation is currently at 9.4% and is expected to go higher. The Bank of England warned last week that it could hit 13%.
But the rise will be based on whatever the rate of inflation is in September this year, which could still come in higher or lower than predicted.
Although a higher inflation rate would give pensioners a bigger rise, they would have to wait until April next year for the extra cash.
And in the meantime they will be left paying more for essentials like foods and bills.
The government has announced a package of support that will see pensioners get one-off payments worth hundreds of pounds between now and next year's state pension rise.
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 also received a £650 payment along with others on benefits like Universal Credit from July.
And those with disabilities could be eligible for a £150 payment.
People who receive Universal Credit and benefit payments are also set to get a boost to their payments next year.
Universal Credit is one of several benefits which is set to increase.
Anyone getting child benefit, housing benefit and personal independence payment could also see higher payments.
The pay rise for millions of struggling households will come in from April next year.
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Anyone struggling with higher bills or worried about debt can get help.
There are plenty of organisations where you can seek advice for free, including:
- National Debtline – 0808 808 4000
- Step Change – 0800 138 1111
- Citizens Advice – 0808 800 9060
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