The State Pension is set to rise by 3.1 percent today (April 11). The change comes after the Prime Minister suspended the triple lock last year to prevent an 8 percent increase, a move that could net the Treasury around £4.5billion.
Retirees were promised their incomes would still rise by the highest out of inflation or 2.5 percent. As a result the state pension will increase by £5.55 a week, bringing them a total income of £185.15 a week.
The rise is happening along increased concerns about the cost of living, with fuel prices, council tax and energy prices all on the increase. Energy regulator Ofgem expanded the price cap by £693 for someone with typical use.
Those on the full new state pension will see their annual income jump to £9,628.50, giving them an extra £289.50, but the increase is just half of inflation. Experts warn the new rate is not enough to cover the cost of living and The Bank of England has warned inflation could reach 7 percent by September as a result of supply disruption and energy price rises.
Centre for Economics and Business Research economist Sam Miley told The Mirror : “Pensioners will be particularly vulnerable to rising prices, due to the fact that their disposable incomes tend to be lower in the first place. Meanwhile, the nature of inflation at present, being heavily concentrated in utility prices, is also set to adversely affect pensioners, given that this makes up a relatively larger proportion of their overall spending.”