State pension payments split into two tiers – will triple lock return

State Pension: Expert outlines criteria to qualify

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Millions of pensioners will be hoping for a reinstatement of the triple lock mechanism, which sees their payments increase each year. The triple lock ensures a state pension rise of whatever is the highest of three measures: 2.5 percent, inflation or average earnings.

If the triple lock is reinstated, it is likely inflation will be the measure used to increase the state pension this year.

However, there is currently a two-tier system in place, and a discrepancy could be noted.

Younger claimants are likely to receive a higher increase, as they are starting from a higher base.

The basic state pension is currently available to men born before April 6, 1951, and women born before April 6, 1953.

The full basic state pension currently stands at £141.85 per week, but what someone gets will be based on their National Insurance record.

The full new state pension, however, is higher at £185.15 per week for eligible individuals.

It is available to eligible men born on or after April 6, 1951 and women born on or after April 6, 1953.

The inflationary figure is yet to be released, as the Government typically takes September inflation into account.


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However, there will be a difference between older and younger state pensioners regardless of what the measure is.

For example, an increase of 11 percent would see the full new state pension rise to £10,686 per year, up from £9,627.

Those on the older state pension currently see a full sum of up to £7,376, and with an 11 percent rise, this would rise to £8,187.

Jan Shortt, General Secretary of the National Pensioners Convention, previously told “It seems ridiculous that the UK should discriminate between our oldest pensioners and those who retired more recently.

“Surely all pensioners ought to be treated equally?”

To get the full new state pension, Britons typically need at least 35 years of qualifying National Insurance contributions.

Certain people may get less if they were contracted out before April 6, 2016.

Meanwhile, 30 years are usually required for the full basic state pension payments to be secured.

However, some are worried about whether the triple lock increase will actually be implemented for the coming year.

Chief secretary to the Treasury, Chris Philp, refused to confirm to journalist Robert Peston state pensions would be uprated in line with inflation next year.

Mr Philp instead stated the matter was “under consideration”.

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Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, said: “These comments will cause real concern among pensioners who were banking on getting an inflationary increase to their state pension next year under the triple lock. 

“The Prime Minister had previously pledged to keep the triple lock this year, but these comments bring uncertainty at an already difficult time. 

“Last week’s mini-Budget didn’t really target pensioners and the prospect they could lose out on a decent increase to state pensions while higher earners pay less tax will not go down well.”

A DWP spokesperson recently told “The Government has committed to implementing the Triple Lock in the usual way for the remainder of the Parliament.

“The UK state pension continues to provide the foundation for retirement planning and financial security in older age.

“The full yearly amount of the basic state pension now over £2,300 higher than in 2010.”

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