Pensions - Articles - Earnings element of the state pension triple lock locked in

 Kate Smith, Head of Pensions at Aegon, comments: “Today’s average earning figure is important for pensioners as it is used for one of the measures in the state pension ‘triple lock’ formula. Under the triple lock, the state pension rises annually at the highest of earnings growth (total pay for three months to July), price inflation (September CPI figure) or 2.5% a year.

 “The government has previously committed to reinstating the triple lock after suspending the earnings element for 2022-23 due to distortions caused by the covid-19 pandemic.

 “With inflation into double-digits, average earnings (total pay) of 5.5% isn’t expected to be the deciding factor in next April’s state pension increase. The state pension is likely to increase by around double this at over 10%, confirmed in September’s inflation figure published next month.

 “While Prime Minister Truss committed to reinstating the triple lock in the immediate term during her leadership campaign, questions will remain over its affordability and whether the triple lock will survive in its existing form in the Manifestos of all parties ahead of the next General Election.”

  Aegon analysis of House of Commons library State Pension Uprating. Source: 2022 Benefits Uprating, p.13

 *Subject to seasonal adjustments