Reinstation of the triple lock on state pensions
22 June 2022
In a parliamentary written answer to a question for Her Majesty's (HM) treasury, it has been announced that the triple lock system will be reinstated for state pensions from next year, subject to the Secretary of State's review.
The triple lock refers to an increase in state pension each year, at the rate determined by the highest of three indicators:
- The consumer price index (CPI) - a measure of inflation
- the average wage increase
- 2.5%
The triple lock was initially introduced in 2010, but was suspended for the current tax year following the pandemic.
Amidst the current cost of living crisis in the UK, May's CPI reached 9.1%, which is the highest it has been since 1982. The response to the question indicated that the CPI in September will be used to determine the increase in state pensions. This could lead to the highest state pension increase in decades.
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