Work and Pensions Secretary, Thérèse Coffey, has introduced a technical Bill in the House of Commons that will give the Government the ability to increase the State Pension next year.
Under current legislation, the State Pension can only be increased if there has been a rise in average earnings in the relevant period of the preceding year.
Due to the challenging economic circumstances, average earnings are expected to show no growth in that period. This Bill makes technical changes which allow ministers to deliver on their commitment to the Pensions Triple Lock next year, even if there is no growth in earnings in the relevant period, ensuring that State Pensions can still be up-rated. Commenting on the
Bill, Thérèse Coffey said: The Government has worked hard to protect all age groups during the pandemic, strengthening the welfare safety net, introducing furlough and income protection schemes, as well as supporting those who have lost their jobs back into work. It is only right, then, that we also ensure pensioners can see their incomes protected as we build back better. In these difficult times, I want to give pensioners peace of mind about thei financial health.
In accordance with the usual process, the Work and Pensions Secretary will undertake a review of social security rates shortly, and will report to Parliament on the outcome of the review in November 2020.
Since 2011, the Triple Lock has ensured that the State Pension is uprated by the highest of earnings growth, price inflation or 2.5%.
Read more here:https://www.gov.uk/government/news/pension-boost-protected-by-new-bill