The decision was confirmed after The Social Security (Up-rating of Benefits) Act 2021 received Royal Assent in November
The Department for Work and Pensions (DWP) has confirmed that State Pension payments will increase by 3.1% in line with the Consumer Price Index (CPI) from April 11, 2022.
People receiving State Pension can choose to be paid either weekly or every four weeks – not to be confused with being paid monthly as the DWP makes 13, four-weekly payments each year over a 52-week period which can result in two payments being made in the same calendar month.
The upcoming increase means that the basic State Pension will rise to £141.85 per week from £137.60 and the full new State Pension will go up to £185.15 from £179.60.
The decision was confirmed after The Social Security (Up-rating of Benefits) Act 2021 received Royal Assent in November. This legislation temporarily suspended the earnings element of the Triple Lock for one year only, following distortions to the earnings statistics brought about by the economic impact of the coronavirus pandemic.
Under the temporary ‘double lock’ rule, State Pension for the 2022/23 financial year was based on the greater of either annual inflation or 2.5%.
Commenting on the 3.1% increase coming into effect next year, the DWP said: In taking this decision, the Government carefully considered the fairest approach for both pensioners and younger taxpayers, many of whom have been hardest hit by the financial impacts of the pandemic.
The Department added: In addition, last year, we delivered primary legislation to increase State Pensions by 2.5%, when earnings fell and price inflation increased by half a percentage point. If we hadn’t taken this action, State Pensions would have been frozen.
The DWP also made clear that the ‘double lock’ is a one-year response to exceptional circumstances and the UK Government will return the earnings element of the Triple Lock next year.