22 November 2023 , 12:44
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Chancellor Jeremy Hunt has today confirmed the exact amount some benefits and the state pension will rise by next year.
The state pension will rise by 8.5% next April, in line with the triple lock guarantee. The triple lock was introduced in 2010 and makes sure the state pension rises every April by whichever is highest out of: inflation (using the previous September rate of Consumer Prices Index inflation), wages (average growth between May and July), or 2.5%.
The highest of these for this year is average wages, which was confirmed to be 8.5%. The state pension increase was confirmed today in the Autumn Statement and comes after rumours suggested the Chancellor could use a lower figure of 7.8%, based on average wages excluding bonuses. The state pension rose by a bumper 10.1% this year.
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The news will be welcome news for low-income pensioners after the triple lock was downgraded to a double lock in 2022 after the Covid pandemic pushed earnings growth higher as workers returned from furlough. The full new state pension is currently worth £203.85 per week, and the old basic state pension is worth £156.20 per week.
Date millions on Universal Credit and benefits will get a pay rise this year
The rise means the full new state pension will rise to £221.20 per week, and the old basic state pension will rise to £169.50. Mr Hunt said today in his speech in the House of Commons: "That is one of the largest ever cash increases to the state pension - showing a Conservative government will always back our pensioners."
The Treasury also today confirmed it will raise some benefits next April in line with Consumer Price Index (CPI) inflation for the previous September. This means some benefits will go up by 6.7%.
Earlier this week, it had been reported that the Treasury was considering using the smaller October inflation figure of 4.6% to raise benefits. The benefits that usually rise in line with inflation are:
- Attendance Allowance
- Employment and Support Allowance
- Housing Benefit
- Income Support
- Industrial Injuries Disablement Benefit
- Jobseeker's Allowance
- Maternity Allowance
- Pension Credit
- Personal Independence Payment
- Statutory Maternity / Paternity / Adoption / Shared Parental Pay
- Statutory Sick Pay
- Tax Credits
- Universal Credit