Pensions - Articles - Chancellors inflation support package for state pensioners

 Steven Cameron, Pensions Director at Aegon comments: “Those receiving state pensions will be relieved to hear the Chancellor announce new targeted support measures to help them with the cost of living squeeze this winter. The government states low income pensioner households could receive a total of £1500* in additional one-off support payments this year. Of this, £650 will be paid to those receiving pension credit, so it becomes more important than ever that those eligible for this benefit make sure they claim it. If not receiving pension credit, the additional support adds up to £850.

 “The state pension increased in April by only 3.1%, after the triple lock formula was amended, far below inflation which is now running at 9%. Had the state pension been increased by this amount, someone entitled to the full rate would have been receiving a weekly state pension of £195.75 a week, £10.60 above the actual level of £185.15. This leaves an individual’s purchasing power £551.20 a year less.

 “The good news is the £1500 payment to the poorest pensioner households will more than compensate for this, even in households with two pensioners. For those not receiving pension credit, the £850 will also be a welcome boost.”

 “Pensioners will be reassured by further confirmation of the government’s commitment to re-instate the state pension triple lock. If September’s inflation rate is 10%, this will mean an increase in the state pension of £18.50 per week from April 2023.”