State pension payments increase each April under the current rules
The triple lock metric used to determine how much the state pension increases could be changed. The policy ensures state pension rates go up each April in line with whichever is highest: 2.5 per cent, inflation or the rise in average earnings.
The Government has previously said it is committed to the triple lock for the duration of this Parliament. But as the costs of the policy rise continue to increase, some experts fear it will soon become unsustainable.
Rebecca Lamb, external relations manager at Money Wellness, said: “With the state pension set to rise by 4.8 per cent next April, many pensioners will be hoping that the Chancellor confirms the triple lock in the Budget next month.
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“While it’s likely to stay for now, there’s always the chance the Government could review how the increase is calculated in future, especially with public finances under pressure.”
She said a bigger concern for state pensioners on a low income is how they will get through the coming winter months before next year’s state pension increase kicks in. She said: “The rise will help next spring, but the real challenge is managing high energy and food costs this winter. The recent U-turn on Winter Fuel Payments will come as a relief to millions, but it’s still worth checking the rules carefully.”
The qualifying rules for the payment have changed from this winter so now most people of state pension age will once again get the payment, worth between £100 and £300 this year. However, if you earn more than £35,000, you will have to pay back the amount through HMRC.
Ms Lamb said: “It’s important not to assume you’re automatically entitled; therefore, check your circumstances so you can plan your finances accordingly.” She also encouraged people to check if they can claim any benefits to bolster their income.
The expert said: “Pension Credit is one of the most underclaimed benefits in the UK, and it can be worth over £3,900 a year on average. Even better, claiming it can unlock extra help such as Housing Benefit, Council Tax reductions, free NHS dental and eye care, Cold Weather Payments, and discounts on broadband and TV licences.”
She also said it is worth checking over your finances to make sure your money goes as far as it can in covering your costs. Ms Lamb said: “Check direct debits, see if there are cheaper deals on bills, and try to put a little aside each week if you can.
“And if you’re struggling or worried about money, free, confidential advice is available from Money Wellness and other services to help you check you’re receiving all the support you’re entitled to and manage your finances.”