What is the pension triple lock? Chancellor Jeremy Hunt makes manifesto pledge

What is the pension triple lock? Chancellor Jeremy Hunt makes manifesto pledge

Jeremy Hunt has promised to keep the triple lock pension protection if the Conservative Party wins the general election this year.

The chancellor has matched Labour’s commitment to keeping the scheme, which has been in place since 2010.

“Absolutely. We made that commitment to pensioners and we think it’s a very important one,” he told the BBC’s Sunday With Laura Kuenssberg programme when asked if he could make the guarantee.

Additionally, both Labour and the Tories are under increasing pressure to confirm what they will do for women hit by a change to the state pension age.

Women Against State Pension Inequality (Waspi) campaigners have said it is time for supportive politicians to “put their money where their mouth is” with “a proper compensation package”. Rishi Sunak said the government will go through the report into women affected by the pension age change carefully before responding.

But what is the pension triple lock and when does state pension increase?

What is the pension triple lock?

First introduced by the Conservative and Liberal Democrat coalition government in 2010, the pension triple lock is a government guarantee that state pensions increase each year in line with whichever is highest out of earnings growth over May to July, inflation – as measured by the Consumer Prices Index (CPI) – or 2.5 per cent.

This means pensions rising in line with the average inflation rate over the year to September 2023, which was 8.5%.

Average earnings have risen by 5.4 per cent year on year.

When does the state pension increase?

Every tax year, on the first Monday on or after April 6, the state pension is increased based on the criteria given above.

How does the state pension triple lock affect me?

The triple lock is protected for the remainder of this Parliament, which ends in 2024. The Chancellor, Jeremy Hunt, previously confirmed the triple lock will be kept in place, meaning pensioners will also get a rise in the state pension and the pension credit in line with inflation.

The triple lock guarantee was initially introduced to ensure pensioners did not see increases in their state pension being overtaken by the rising cost of living.

Both the Conservative Party and Labour had confirmed in March that they would be including an extension to it in their general election manifestos.

How much is the current state pension?

Your state pension amount depends on people’s national insurance record, the Government has said.

The full rate of new state pension will be £203.85 a week. The amount could be different depending on: if people were contracted out before 2016; The number of national insurance qualifying years they have; and if they paid into the additional state pension before 2016.

You can check your state pension forecast here.