State pension relief as Jeremy Hunt confirms triple lock will go ahead

Steven Cameron, Pensions Director at Aegon, said the confirmation meant “pensioners can breathe a huge sigh of relief” but warned: “Next year’s increase could be its ‘last gasp’ as the current formula is looking increasingly unsustainable.”The triple lock ensures the state pension rises in line with whichever is highest – inflation, wage increases or 2.5 percent – but was temporarily suspended last year due to an unusual rise in wage inflation (8.3 percent) caused by the coronavirus pandemic.Amid the doom and gloom of an Autumn Statement that promised tax rises, a cut to energy bill support and public services, there was a glimmer of good news for pensioners.Chancellor Jeremy Hunt promised the state pension will rise in line with inflation next April and not wages or 2.5 percent.This will be a welcome relief to millions of British pensioners who only saw it rise by 3.1 percent in 2022 despite soaring food and energy bills making life difficult.The triple lock applies to both the basic state pension and the new state pension to ensure each pot keeps pace with rising costs.READ MORE: Jeremy Hunt must ‘seize opportunity’ to reform Inheritance Tax