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  • Writer's pictureNoel Aloko

The government has confirmed that the state pension will rise by 2.5% from April 2022.

The government has confirmed that the state pension will rise by 2.5% from

April 2022, breaking the pension lock as a result of the impact of the


In a busy day in parliament, the minister of state told MPs that this would

be a one-year intervention and that the normal increase in line with average

earnings increase would be reinstated from the 2023-24 tax year.

As happened last year, once again the state pension will rise at a fixed

rate below the RPI rate of inflation.

Secretary of state for work and pensions, Thérèse Coffey MP, said: '[Last

year], we legislated to set aside the earnings link, allowing me to award an

uprating of 2.5% as this was higher than inflation. If we had not done this,

state pension would have been frozen.

'Thanks to our vaccination programme which started with the eldest and most

vulnerable in our society, we have seen that as the economy and businesses

have reopened and millions have moved off furlough and returned to work, the

labour market has shown strong signs of recovery and earnings have risen at

an unprecedented rate and we face a distorted reflection of earnings growth.

'So tomorrow, I will introduce the Social Security (Up-rating of Benefits)

Bill. For 2022/23 only, it will ensure the basic and new state pensions

increase by 2.5% or in line with inflation, which is expected to be the

higher figure this year. And as happened last year, it will again set aside

the earnings element for 2022/23, before being restored for the remainder of

this parliament.'

In addition to those receiving basic and new state pensions, this will apply

to those receiving standard minimum guarantee in pension credit and widows'

and widowers' benefits in industrial death benefit.

Coffey added: 'Since 2010, the full yearly basic state pension has increased

by over £2,050 in cash terms. There are also 200,000 fewer pensioners in

absolute poverty - both before and after housing costs - than in 2009/10.'

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