How much is the state pension?

Many pensioners have struggled amid the cost of living crisis (PA)
Many pensioners have struggled amid the cost of living crisis (PA)

It has been a challenging year for pensioners, with the growing cost of living crisis leaving many people already struggling even more vulnerable.

Pensioners have been helped by the government through cost of living payments to help with energy bills and extra cash in their Winter Fuel Payments.

In October, there were concerns the government would abandon the so-called triple lock - a promise that pensions will rise each year in line with the highest of three figures – inflation, average earnings or 2.5%.

However, Chancellor Jeremy Hunt confirmed in his autumn statement it would be protected and rise by 10.1% next April in line with September's inflation rate.

Here's what you need to know:

How much is the state pension?

The state pension is paid to people who reached the age of 66 before 6 April 2016, and has two tiers.

The basic state pension is based on a person’s National Insurance contribution record and the additional state pension is partly earnings-related.

The full state pension is currently £185.15 per week.

If you reached State Pension age before 6 April 2016, you’ll get a different amount under the basic state pension rules.

What is the triple lock?

The pension triple lock is a government guarantee that state pensions grow each year in line with whichever is highest out of earnings, inflation or 2.5%.

It was introduced by the Conservative and Liberal Democrat coalition government in 2010 to give pensioners a minimum level of income which would keep pace with growth in workers’ earnings.

In the latter months of 2022, that meant that if the triple lock was maintained by the government, pensions would have to rise in line with inflation in April next year - at 10.1% based on September's inflation figures.

The triple lock was paused September 2021 due to the COVID pandemic, but in his Autumn Statement Chancellor Jeremy Hunt confirmed that it is being introduced for the financial year starting April 2023.

Watch: What is the pensions triple lock and why is the government staying committed to it?

How much will pensions increase in 2023?

A 10.1% increase on the full new state pension will push it up from £185.15 to £203.85.

For those on the full, old basic state pension, who reached state pension age before April 2016, the increase means a weekly rise from £141.85 to £156.20.