State pensioners face 'real loss of income' despite Triple Lock rise of £475

State pensioners face 'real loss of income' despite Triple Lock rise of £475
-Credit: (Image: Reach Publishing Services Limited)


State pensioners face a "real loss of income" due to a Triple Lock hike due to the rising Cost of Living under the new Labour Party government, it has been warned. Close to half a million state pensioners in the UK are set to miss out on the promised £475 triple lock boost next year.

The increase, based on the 4.1 per cent wage growth element of the triple lock, will see the full new state pension rise by £9.10 per week to £230.30. Richard Parkin, head of Retirement at BNY Investments, said: "The triple lock is intended to ensure pensioners’ standard of living doesn’t fall behind that of workers. The loss of the Winter Fuel Payment is a real loss of income and so sets people back in terms of their standard of living regardless of how wealthy they are."

Mr Parkin explained: "How the State Pension increase affects others is complicated and for those on lower pension levels, mostly older pensioners, the triple lock certainly doesn’t cover the loss of the Winter Fuel Payment and inflation.

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"The hope is that Pension Credit will be increased in line with State Pension increases but we’ll need to wait for the Budget to see how the government tackles this."

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."

Mr Marsh urged pensioners to check if they can make savings on their energy bills with a simple switch, adding: "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."