News

Pension triple-lock abandoned for one year

The government has confirmed that its triple-lock guarantee on pensions is to be abandoned for one year. The guarantee was first introduced in 2010 and has remained in place until now. This guarantee has seen the full yearly State Pension increase by over £2,050 in this period.

The triple-lock is the mechanism used to calculate increases to the state pension each year. Under the triple-lock guarantees the basic state pension rises by whichever is the highest out of average earnings growth, inflation or 2.5%.

The government is concerned that the growth in earnings will be between 8% and 8.5% and has decided that setting aside for one year the use of average earnings growth figures for State Pensions would be prudent. This large growth figure has been caused by the unprecedented fluctuations to earnings caused by the COVID-19 pandemic.

The other two elements of the triple-lock will remain in place, meaning that the State Pension will be uprated by the higher of inflation or 2.5%.

The government has argued that this pause in the triple-lock is the fairest approach for both pensioners and younger taxpayers. However, this decision will leave many of those in receipt of the State Pension deeply disappointed with this decision and worried that this is the start of further broken promises.

It had been rumoured for quite some time that HM Treasury was exploring ways to suspend the triple-lock as it became apparent that the earnings growth figure would appear to be artificially high.

Source: Department for Work & Pensions Tue, 14 Sep 2021 00:00:00 +0100

Newsletter

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

> SIGN UP FOR THE NEWSLETTER
> LOGIN

Some accountancy websites also provide pages and pages of tax information, helpsheets, etc. We prefer to give clients personally tailored advice. So, if you want details of tax rates and allowances just go to the HMRC website on which you should find what you’re looking for. If you need more individual advice please contact us.

Below are links to websites you may find of interest, but as we like to support our local community and clients, we have included links to websites that may be of interest:

HMRC
FT
BBC
VEALE WASBROUGH VIZARDS
CESP
PRACTICE INDEX
SIMCOMM ACADEMY

More Local:
FOOTPLATE EXPERIENCE
ANGLEBURY PRESS
OFFCAMBER.CO.UK