State pensions set to be boosted by 2.5% below triple lock
The triple lock guarantee is a commitment from the Government that the state pension will increase each year in line with inflation, average earnings or 2.5% – whichever is highest.
Today it was announced that the Consumer Price Index (CPI) inflation measure was 0.5% for September 2020 – and with both inflation and changes to average earnings well below 2.5%, the 2.5% figure will likely be used to calculate this year’s state pension rise.
It’s worth noting that the triple lock is a Government commitment, rather than a requirement, and the Chancellor hasn’t yet announced how much the state pension will rise by – though it’s expected to be confirmed as 2.5%.
The future of the triple lock has been questioned recently, especially as any economic downturn due to the coronavirus pandemic could lead to a bigger disparity between increases to the state pension and to wages and other benefits.
See our State Pension guide for more info on what you could be entitled to.