03292017Wed
Last updateFri, 24 Mar 2017 12pm

 

Pensioners to get an extra £170 a year

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Millions of pensioners will be receiving a boost to their pensions, by April of 2016, due to rise of salaries.

A “triple lock” guarantees that the state pension will increase by the highest of three rates – average earnings, inflation or 2.5 per cent.

The move will add £3.22 to the current single pension of £115.95 a week – an annual rise of almost £170. A total of £70bn will be spent on the state pension in 2015, more than the combined education and Home Office budgets.

However, this will cost taxpayers £6bn, doubling the £2.9bn originally forecast.

“Government actuaries have warned that, since 2010, pensioners’ income is £10 a week, higher than if it had been upgraded by earnings alone”, says Keith Richards, chief executive officer of the Personal Finance Society.

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