What is the triple lock pension?

PRIME Minister Liz Truss has confirmed commitment to the pension triple lock.

But what is the triple lock, and what does it mean for your pension?

What is the triple lock?

The triple lock is a calculation used to determine how much the state pension rises by each year.

It was introduced by the coalition government in 2010 and sees pension payments increase in line with whichever of the following is highest:

• Earnings – the average percentage growth in wages in Great Britain
• Prices – the rising cost of living in the UK, as measured by the Consumer Prices Index (CPI)
• 2.5%

The triple lock means the pension payments will rise in 2023 by whichever is highest: earnings, inflation or 2.5%.

It was temporarily halted in April 2022 for a “double lock”; and the wage element was withdrawn.

That meant the maximum new state pension amount went from £179.60 to £185.15 per week based on an inflation rate of 3.1% for the previous September.

In 2022, the maximum basic state pension, which is for those with a National Insurance record pre-April 2016, rose from £137.60 to £141.85 a week.

The new state pension is for those who build up National Insurance contributions (NICs) after April 2016.

At least ten years worth of NICs is needed to get the new state pension, while 35 years are needed to qualify for the full amount.

You need at least 30 qualifying national insurance years to get the basic state pension.

Is the triple lock being scrapped?

Prime Minister Liz Truss has confirmed that the triple lock will be protected.

This means millions of pensioners will not be left worse off.

She told MPs: “I am being completely clear – we are protecting the triple lock”;.

There had been speculation that inflation, which has reached a whopping 10.1%, would be ditched from the lock.

Instead it would have used the lower rate of wage growth, which is currently 5.4%.

Millions are set to receive an extra £300 boost this winter to help with soaring bills.

It’s for pensioners who receive the Winter Fuel Payment of between £100 to £300 already.