State Retirement Pensions

Treasury written question – answered on 15th February 2021.

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Photo of Luke Pollard Luke Pollard Shadow Secretary of State for Environment, Food and Rural Affairs

To ask the Chancellor of the Exchequer, whether he has plans amend his policies on the triple lock on state pensions.

Photo of Steve Barclay Steve Barclay The Chief Secretary to the Treasury

Due to the unprecedented economic circumstances, average earnings fell last year. Under current legislation, this would mean a freeze to State Pensions. However, the Government took action by legislating to give the Government the ability to increase State Pension and Pension Credit rates for 2021/22. This enabled the Government to honour its manifesto commitment to the Triple Lock which uprates the State Pension each year by the highest of average earnings growth, price inflation and 2.5%. As announced by the Secretary of State for the Department for Work and Pensions on 25 November, the new State Pension and the basic State Pension will both be increased by 2.5% this April.

As with all aspects of Government policy with major spending implications, any decisions on future changes to the Triple Lock will be taken as part of the annual Budget process in the context of the wider public finances. Final decisions on uprating policy for pensions and welfare benefits are taken by the Secretary of State for Work and Pensions through her annual uprating review.

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