State pensioners will have £473 Triple Lock hike 'reduced' to £173
State pensioners could have a state pension hike fo £473 hike effectively WIPED OUT thanks to losing the £300 Winter Fuel Payment. Under the Triple Lock, both the New and Basic State Pensions from the Department for Work and Pensions (DWP) is set to rise.
But many pensioners face paying more tax next year as the full new state pension edges closer to the current £12,570 tax-free personal allowance. And now experts are warning the rise could also be scrubbed out and reduced by losing the £300 Winter Fuel Allowance.
Greg Marsh, CEO of AI money-saving tool Nous.co, said: "For millions of pensioners the increase will be almost entirely cancelled out by the loss of their Winter Fuel Payment. This will leave significant numbers struggling to afford their bills just as we head into winter, so it’s crucial that people make savings where they can."
READ MORE State pensioners handed free £473 each under bumper Triple Lock hike
He said: "The cheapest way to pay for energy is by direct debit – households who pay by cash or cheque currently pay around £100 per year more than direct debit customers. Most households aren’t on a fixed deal right now and can save by switching providers with services like Nous.co.
"The majority can save the better part of £150 on their energy bills." The triple lock guarantees the state pension rises each April by the highest out of inflation (using the previous September inflation figure), wages (average growth between May and July) or 2.5% - whichever is highest. It was announced today that inflation for September had fallen to 1.7% - which means wage growth will be used to determine the state pension increase.
Wage growth was revised this week to 4.1% - up slightly from the previous estimate of 4%. The state pension increase will be confirmed by Chancellor Rachel Reeves in her Autumn Budget on October 30.