Tuesday, 15 October 2013

Nearly £3 on the pension

The state pension is likely to increase by nearly £3 a week next April, in line with the latest figure for average price increases, announced today.

The rise would take the pension from £110.15 a week to more than £113 -- most likely £113.10.

The government has promised that pension increases will be governed by a triple lock, with the annual rise set according to the highest of September inflation, average earnings or 2.5 per cent.

The September Consumer Price Index rose by 2.7 per cent, so -- with earnings increases still very low -- it will be the rate used for the calculation, as long as the Chancellor doesn't change his mind.

Although the exact increase would be £2.97 taking the pension to £113.12, the government usually rounds the weekly pension figure to the nearest 5p, which implies a rise to £113.10.

Of course, if he chose to, George Osborne could round the number upwards and give pensioners a full £3 extra.

Carers Allowance and some disability benefits are also increased in line with September's CPI.

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