CSPA welcomes confirmation in the Chancellor’s Autumn Statement that the State Pension triple-lock will be restored for the uprating due from April 2023. This means that the basic and new State Pension rates will increase by 10.1% reflecting the September increase in the Consumer Prices Index.
At the same time, the cap on average Energy bills will increase by an extra £500 a year to £3,000 from April 2023.
The State Pension triple-lock protection (giving the higher of inflation; average earnings; or 2.5%) was suspended last year so that the State Pension increase in April could be restricted to 3.1% instead of the average earnings increase of 8.3%, while inflation in April was 9%, meaning a reduction in the real value of the State Pension.
The current rate of basic State Pension is £141.85 per week (£7,376pa); and the highest rate of the new State Pension (for those retiring from April 2016) is £185.15 a week (£9,627).
The Chancellor also announced that the Energy Price guarantee of £2,500 would increase from April to £3,000, meaning a £500 a year increase in average energy bills over and above the sharp increases of the past year. However, he also announced additional help to cope with energy bills for pensioner households of £300 next year, like the additional supplement to Winter Fuel Payments payable to pensioners later this month.
CSPA Deputy General Secretary David Luxton said today; “We welcome the announcement that the triple lock has been restored to ensure pensions increase by 10.1% from April 2023. This comes after all pensioners lost out by over 5% last April, when the State Pension only rose by 3.1% while average earnings had increased by 8.3% and inflation was running at 9%. Many CSPA members rely on the State Pension to supplement their Civil Service pensions, and have been suffering with the cost of living crisis.
We still await the Government`s formal Order confirming that Civil Service pensions (and all other Public Service pensions) will increase by 10.1% from April 2023, in line with the September inflation increase. This may not be formally confirmed until January.”
Please see the helpful overview provided by our Parliamentary advisors Connect for further information on this link Connect Overview of Chancellors Autumn Statement
(Photo: Chancellor of the Exchequer Jeremy Hunt arrives to attend the weekly cabinet meeting with Prime Minister Rishi Sunak in 10 Downing Street. Picture by Simon Dawson / No 10 Downing Street)