State pension to rise 8.5% to £221.20 a week from April
The government will honor the triple lock formula and raise the state pension by 8.5% in line with average earnings.
In his autumn statement chancellor Jeremy Hunt confirmed the triple lock will be honoured ‘in full’ by raising it to £221.20 a week from April 2024.
This is worth up to £900 a year.
He said: ‘After a global pandemic and energy crisis, we have taken difficult decisions to put our economy back on track.
‘We have supported families with rising bills, cut borrowing and halved inflation.
‘Rather than a recession, the economy has grown. Rather than falling as predicted, real incomes have risen.
‘Our plan for the British economy is working. But the work is not done.’
Pension savers will have the right to have ‘one pension pot for life’, Jeremy Hunt said.
The Chancellor told MPs: ‘I will also consult on giving savers a legal right to require a new employer to pay pension contributions into their existing pension pot if they choose, meaning people can move to having one pension pot for life.
‘These reforms could help unlock an extra £75 billion of financing for high-growth companies by 2030 and provide an extra £1,000 a year in retirement for an average earner saving from 18.’
Mr Hunt said he would also take forward ‘further capital market reforms, to boost the attractiveness of our markets, and the UK one of the most attractive places to start, grow and list a company’.
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