State pension to hit £185 a week despite threat to triple lock

THE state pension is expected to rise to £185 a week as the government is considering scrapping the triple lock.

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

The retirement benefit rises by the higher of three things: average wages, the consumer prices index (CPI) or 2.5% – this is known as the triple lock.

Average wages are now the highest of the three – jumping 8.8% -because CPI inflation is currently at 2.4%.

However, the government is considering axing the triple lock for one year and introducing a smaller rise.

The Times reported that the government is thinking about implementing a 3% rise instead.

That means a pensioner claiming the full state pension of £179.60 would get an extra £5.40 – bringing the total to £185.

Someone who claims the old basic state pension of £137.60 would get a weekly boost of £4.15, or £141.75 a week.

So far, the Department for Work and Pensions hasn’t confirmed if there will be changes to the triple lock.

There have been calls for the triple lock to be axed for years given its cost on public coffers – either becoming a double lock or being scrapped altogether.

Pension consultants LCP has said before that applying the principles of the triple lock over two years rather than one would keep the promise while saving cash.

The triple lock was first introduced by former Tory Prime Minister David Cameron back in 2010.

Steven Cameron, pensions director at financial provider Aegon previously said: “It’s only right that the Treasury is beginning to think about what it needs to do to put the country’s finances back on a steady footing.

“It’s no surprise to see policies perceived by some as overly generous for certain groups on the list of expenditures that could be reduced.”