September’s fall in inflation means the basic state pension is set to rise by £2.85 a week in April next year, lifting it from £113.10 to £115.95 – prompting claims that ministers were allowing it to “wither on the vine”.
The government introduced the so-called “triple lock,” which means the basic state pension rises by either the September consumer price index (CPI) figure, growth in average weekly earnings or 2.5%, whichever is highest.
With inflation falling to a five-year low of 1.2% in September, it is the 2.5% figure that is almost certain to be used, though the Treasury said this would not be known for sure until the latest average weekly earnings figures were revealed on 15 October.
A spokesman for the Treasury said: “The triple-lock pension guarantee that this government has put in place means the basic state pension will rise by at least 2.5% next April – double the rate of inflation. That means around an extra £150 more in the pockets next year of those that have worked hard all their lives.”
But Britain’s biggest pensioner organisation, the National Pensioners Convention, said that over the last few years, the decision to move from linking to RPI (retail price index) to CPI had effectively robbed older people of a proper increase in their pensions – though it added that the real issue was not about the size of the increase, but how small the state pension was.
It said: “Many older people are struggling with the rising costs of living, and our pensions are simply not high enough. Yet every day, commentators claim older people have escaped the austerity measures … Without action to raise the basic state pension and then ensure it maintains its purchasing power, I’m afraid the government is simply letting it wither on the vine.”
