MP calls for state pension to increase by more than 10.1%

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The state pension triple lock will this year deliver its biggest boost to pensioners, in line with September 2022’s CPI inflation figure. The policy was introduced in 2010, as a guarantee to ensure the value of the state pension would increase each year, regardless of inflation or economic conditions.

This ensures the state pension will rise by whichever is the highest of the CPI, average earnings, or 2.5 percent.

The triple lock has often been credited with helping to boost purchasing power of the state pension.

However, according to one MP, the increase this year may not go far enough.

Nigel Mills, Conservative MP for Amber Valley, has challenged the existing plans for the state pension.

Instead, he has urged the Government to go further with their support for pensioners.

According to Hansard, Mr Mills stated: “We have a rise of 10 percent while inflation is actually 10 percent, so we at least have an uprating that looks to be the right number.

“However, the fact is that that is still a bit by chance, because we are still having to use information that will be six months out of date by the time we get there. It shows how strange the system we have is. 

“When the Minister winds up, can they say whether any progress at all has been made in trying to get the systems in a position where we can use a more recent number, so that we do not end up with a repeat of last year, using an out-of-date number that is way below the level of inflation by the time we get into the year?”

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The Tory MP welcomed the 10 percent rise to the state pension and benefits, stating this was “the right thing to do”.

However, he did analyse the way in which increases are introduced, when he added: “The timing of the changes has an unfortunate impact.

“By the time we get to April we will have had increases of just over 13 percent for the last two years, while inflation will have risen by about 17 percent, so people will still be four percent down on where they were before the crisis.”

With food price inflation higher than the consumer prices index, many people are struggling with the cost of their grocery shop.

Mr Mills also highlighted the fact the energy price cap is set to rise to £3,000 from April, putting further pressure on households as support is withdrawn.

He explained: “So the average household may well be £1,000 worse off on their energy bills. 

“The rise in the state pension of about 10 percent is a little under that, so will only cover the rise in energy bills from the current financial year to the next.”

Mr Mills concluded by calling for a “rebasing at the end of this crisis” to reflect the substantial change in the cost of living.

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The 10.1 percent boost will see the full new state pension rise from £185.15 per week to £203.85 weekly.

Some may get less than the full new state pension if they were contracted out before April 6, 2016.

Whereas the full old, basic state pension will increase from £141.85 to £156.20 per week.

The amount of state pension a person will receive can vary, usually depending on the National Insurance contributions they have made throughout their life. 

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