Triple lock confirmed with 10.1% rise for next April

The chancellor, Jeremy Hunt, has offered some relief to pensioners, but the future remains uncertain for workers...

Pensioners will be breathing a sigh of relief as the ‘will they, wont they’ triple lock pantomime finally comes to a close.

They can now be confident that they’ll receive a 10.1% increase to their state pension payments next year, though should Hunt’s plans to curb inflation fail, that may still be a real-term cut.

Some will also be more likely to pay income tax given the freeze in the personal tax allowance.

However, at a cost of more than £10bn to the treasury, the question of the Government’s interest in intergenerational fairness has also been put to bed.

Those who are still working find themselves facing a reduction in real wages, the prospect of increased unemployment, notable tax hikes, and a shrinking economy.

The chancellor has clearly put his eggs for the next election into one basket; the Government must hope it's enough.

Read our August 2022 blog for more background information about the triple lock.

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