Under the triple lock system, the state pension increases by the highest of the growth in wages, inflation as measured by the Consumer Prices Index (CPI) or 2.5%.

The government takes September’s CPI inflation (released in October) and uses the three-month average of weekly earnings from July to help work out what the uprating will be.

Under current rules, state pension payments can only increase if there’s been a rise in average earnings in the relevant period of the preceding year.

According to the latest figures from the Office for National Statistics (ONS), earnings growth was -1% in the three months to July 2020, thanks to furlough pay and reduced bonuses.

So in theory, state pension payments would have been frozen next April. However, the government has this month introduced a new Bill to ensure the technical detail doesn’t stop the state pension from increasing by at least 2.5% in April 2021.

The government hasn’t specified whether it will keep the triple lock beyond April 2022, and this is likely to depend on the economic recovery.

https://www.which.co.uk/news/2020/09...C_WS_EM_021020



So, good news for pensioners .....

What ever 'they' grant us as a raise in State pension 'they' usually take back in Tax from the Works pension!

What ever 'they' grant us as a raise in State pension 'they' usually take back in Tax from the Works pension!