Inflation rises to just 0.5%, next year state pensions will rise to 4. 4.40 a week

The smallest increase allowed under state pension law will increase to just ড 4.40 a week next year.

The increase means the ‘new’ basic state pension will rise from 17 175.20 to 9 179.60 per week – representing £ 228.80 per year.

The ‘old’ basic-rate state pension will increase 40 3.40 a week from 5 5,134.25 to 7 137.65.

Representing 2.5% – the increase will be confirmed by the government at a later date, but can only be confirmed after the September inflation figures come down to just 0.5%.

Under the current rules, pensions increase by a maximum price, earnings or 2.5% per year.

With earnings stopped by coronavirus and prices rising by only 0.5%, that means the 2.5% figure will be used to set the pension in 2021.

Tom Selby, a senior analyst at AJ Bell, says: “The triple-lock value of the state pension has never been clear as the Covid-19 hammer has brought wages and inflation to about 0%.

The rise of pensions is guaranteed under the “Triple Lock”, first introduced in 2010

“If it weren’t for the policy, pensioners would see their state pensions freezing next year.

“As such, retirees will benefit from a 2.5% state pension increase in 2021/22, which will add মূল্য 3.40 a week to the value of the‘ old ’basic-rate state pension and ‘4.40 per week to the‘ new ’state pension introduced in April 2016. Was.

“The 2.5% triple-lock underpin will be the fourth since the policy was introduced in 2011/12, which means the value of state pensions will increase in real terms against the average wage of both workers and the price of goods and services.”

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The September inflation figures – which are commonly used to determine state pension increases – were hurt by the withdrawal of the Hit Out to Help Out project.

Jonathan Eight, deputy national statistics statistician at ONS, said: “The official termination of the Eat Out to Help Out Scheme means that dining prices have risen in September, partly surpassing the sharp fall in inflation in August.

“Air fares will usually be significantly reduced at this time due to the end of the school holidays.

“Meanwhile, some consumers are looking for alternatives to using public transport, such as increasing demand for used cars, whose prices have risen.”

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