The choice to temporarily scrap the triple lock due to lack of affordability has been a controversial one amongst pensioners. The mechanism typical
The choice to temporarily scrap the triple lock due to lack of affordability has been a controversial one amongst pensioners. The mechanism typically guarantees the sum rises in real terms by the highest of 2.5 percent, average earnings or inflation. With warped earnings data due to COVID-19, the state pension was expected to rise by some eight percent come April 2022.
However, the Government made the decision to ditch the triple lock in favour of a double lock this year – meaning the increase is now confirmed at 3.1 percent.
The National Pensioners’ Convention (NPC) has argued this is the wrong choice, especially given recent developments with inflation.
Earlier this week, it was confirmed inflation hit a 30-year high of 5.4 percent, pushing up prices of food and fuel for heating.
As a result, the NPC states pensioners are facing a crisis with their finances, which could only get worse if inflation continues at its current pace.
READ MORE: Pension savers warned about withdrawing cash as inflation soars
While the full new state pension is currently £179.60 per week, not all pensioners will receive this.
In fact, those who have retired before April 2016 will not even get the chance, as they are on the basic state pension.
This is worth less at £137.60 per week, at present.
Ms Shortt also highlighted difficulties for those who are in receipt of a small, occupational pension.
While this can be a humble figure, some will be shocked to find it could take them just over the qualifying level for Pension Credit.
The benefit is designed to help those on a low-income, but has strict eligibility criteria on who can receive the sum.
Ms Shortt added: “This is a disastrous situation for low-income families of all ages.
“But the Government can do something about it, starting with reinstating the state pensions triple lock, and offsetting the fuel prices free-for-all caused by the lifting of the energy cap.”
Express.co.uk has contacted the Department for Work and Pensions (DWP) for comment.