State pensioners in line for massive 8.8 percent pay rise – what will Rishi Sunak do?

Sunak should 'step away' from pension triple lock says Gauke

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Growth in average total pay – including bonuses – was 8.8 percent and regular pay – excluding bonuses – was 7.4 percent among employees for the three months April to June 2021. The Chancellor Rishi Sunak is set to face even more pressure going forward as newly released wage figures today showed the state pension could rise by 8.8 percent from next year. This is above previous forecasts of eight percent which were already deemed by many to be too costly for the UK taxpayer.

Should payments rise by eight percent, basic state pension payments will rise from £137.60 now to around £149.70 in 2022/23.

For the new state pension, payments will rise to £195.40.

Ian Browne, a pensions expert at Quilter, commented: “The triple lock is a ticking time bomb for the Chancellor, and time is quickly running out for Sunak to make one of the most contentious spending decisions of a generation.

“Does he risk jeopardising the grey vote by tweaking or scrapping the lock to save a pretty penny, or does he hold fast on the lock and give pensioners a seismic boost to their income despite the controversial cost? Sunak will have to decide whether to cut the red wire or the blue wire, but so far he has just stalled.”

More to follow…

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