By Fergal MacErlean • 02 April 2022 • 9:50
A major stumbling block for pension savers is that Chancellor of the Exchequer Rishi Sunak will not match benefits, due to rise by just 3.1 percent in April, to the surge in inflation, the Daily Express reports today, April 2.
With inflation expected to hit a whopping eight per cent this spring, those relying on the British state pension are in for a shock as their income will increase by just more than three per cent.
This is because the Government announced last year it was to suspend the triple lock for a year due to fears that a scheduled rise of more than eight per cent, in line with average earnings, was unfair.
The good news is that, when the triple lock returns, state pensioners will enjoy their biggest cash rise ever, former pensions minister Steve Webb told the Financial Times last week.
He said: “Pensioners are set to face a financial rollercoaster in the coming years with a tough squeeze this year followed by a catch-up next year.
“The spring statement will have been a big disappointment, and some pensioners may find themselves having to apply to their council for hardship funds simply to make ends meet.
“But next year should see the biggest ever cash rise in the value of the state pension, as pension rates catch up. The problem is that ‘jam tomorrow’ will not pay bills today,” Webb added.
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Originally from Dublin, Fergal is based on the eastern Costa del Sol and is a web reporter for The Euro Weekly News covering international and Spanish national news.
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