Retirees will receive their highest increase in state pension payments beginning today, but claimants will still be worse off.
Retirees will now be entitled to £203.85 per week, up from £185.15 under the state pension triple lock, which sees payments rise by the highest of inflation, average earnings, or 2.5 percent.
This equates to a £10,600 annual pension. However, the inflation figure that prompted the increase is out of date.
Officials increased the state pension by 10%, in line with the change in the Consumer Price Index from September to September (CPI).
However, inflation has remained above this level since then.
The Office of National Statistics reported a surprise increase in inflation last month, with prices rising 10.4% from March 2022 to March 2023.
According to Caroline Abrahams, Age UK’s charity director, “this increase will provide some relief but will not be enough to help many people make ends meet.”
Simultaneously, there are concerns that the state pension triple lock may be phased out in the future.
Some politicians have expressed concern that the policy is unsustainable due to the financial burden it imposes on the government.
Abrahams went on to say: “Although the full state pension is £10,600 a year, most pensioners receive less than this and are going to need greater support to deal with the cost-of-living crisis.
“Maintaining the triple lock in future years is important, while the Government should be carefully looking at what other financial support might be necessary.”
A Government spokesman also said: “The full rate of the New State Pension will be more than £10,000 per year for the very first time, while the Basic State Pension will be over £3,050 a year higher than in 2010.
“We also recognise the ongoing pressures of the rising cost of living, which is why we have provided record levels of additional direct financial support for the most vulnerable – £1,200 last year and a further £1,350 in 2023/24 – while the Household Support Fund is helping people with essential costs.”