£5.57 per week increase to the full new state pension


Article by Adele

The Consumer Price Index fell back slightly from August record breaking level of 3.2% to 3.1% and will be the rate of increase for state pensions as from April 2022.

As we’ve looked at earlier.

The state pension increases each year by the Triple Lock which was introduced the Conservative/Liberal Democrat coalition government in 2010. It was a guarantee that the state pension would keep pace with real cost of living by increasing every year. The term triple lock was derived from the three measures used to decide on the level of uplift being the greatest of:

  • Average Earnings
  • Prices – using the Consumer Price Index (CPI)
  • 5%

However, on 7th September of this year, Therese Coffey, Work and Pensions Secretary announced that the triple lock in its current form was to be suspended with the increase being determined by just the two factors, the greater of CPI or 2.5%, removing the average earnings measure.

The reason for this suspension, was the impact that the Covid pandemic had on average earnings. Peoples’ earnings reduced when they were placed on furlough, then as furlough was phased out reducing the reliance on the furlough scheme and people returned to full pay the measure of average earnings increased rapidly with an estimate of 8% from May to July 2021.

According to the wealth management firm Quilter, had the suspension not been made an 8% increase as opposed to a 2.5% increase would have cost the government an additional £5 billion when already faced with the public sector net debt of £2,202.9 billion at the end of August 2021.

If you need to speak to a Pension Adviser just give us a call.

Pension Consolidation

Our Pension Advice Experts at Christina Clegg Financial Planning Services explain how to consolidate all you pensions into one place.

Our team has over 100 years of experience in financial services - so why not arrange a free initial meeting with a Pension Adviser and find out how we can help? Call us on01282 614444 or drop us an e mail to enquiries@ccfps.co.uk

Awards and Accreditations

Pension Transfer Gold Standard
Financial Vulnerability Taskforce
VF 23
Vouched For 2022
Vouched For 2021
Vouched For 2020
Vouched For 2019
Vouched For 2018
Vouched For 2017
Vouched For 2016
Vouched For 2015
Vouched For 2014

Adele, what an easy, straightforward manner you have. It was so good of you to set aside time to look over my finances……you have been kind and concise and I feel a lot calmer. Thank you so very, very much.

Mrs B

I would like to thank you all for the advice financial advice given to myself regarding my pension, especially Adele.

Mr O

The quality of service from Adele and everyone at the company was excellent, in fact the service we received was better than that.

Mr & Mrs F