State pension triple lock hopes dashed after increase wiped out - 'Little light at the end'

Experts have warned that the state pension triple lock will not soften financial worries for retirees as inflation stays high.

The rate of inflation eased to 10.5 per cent during the year to December, down from 10.7 per cent the month before.

This could suggest that the UK is now through the worst of the cost-of-living crisis, sparking hopes that prices will come down and the market will return to normal.

However, those on limited incomes will still feel the full force of spiralling costs.

The amount you could receive from your state pension varies on how long you defer the payments for but the basis is £185.15 a week, paid once a month.

However, retirees are heading for a 10.1 per cent increase to the state pension from next April, after Chancellor Jeremy Hunt confirmed that the triple lock is being protected.

A 10.1 per cent increase would push that figure up to £203.85 a week.

Those who began receiving their pension before April 2016 will see an increase from £141.85 as week to £156.20 a week.

Technical director at Canada Life, Andrew Tully said: “Today’s numbers will offer little by way of comfort.

“While inflation may be ‘cooling’ from the peak of last year, we will see prices for everyday goods and services continue to rise, just not quite as quickly as we saw in 2022,” he told the Express.

He continued: “For people on fixed incomes, especially those drawing on their pensions in retirement, a double-digit rise in state pension from April will offer little light at the end of the winter months.”

The changes will put pressure on those thinking of retiring as they contemplate working for longer to increase the weekly payments of their state pension.

It comes amid news that changes to the state pension could be announced in just months as ministers await the outcome of a new report considering whether to increase the national retirement age.

Last November Jeremy Hunt confirmed the Government had commissioned a report to look into the cost of the state pension and intergenerational fairness.

At present the state pension age is 66 and is due to rise to 67 in 2028 and then to 68 between 2044-2046.

This could be fast-tracked and happen in just months.