Today, the pensions select committee will hear evidence on how to better protect pensioners in the UK. Households in the UK are facing their biggest income hit in 30 years as the cost of living crisis worsens. Inflation is set to top seven percent in April, meaning many in the UK are having to cut back on essentials in order to stretch their cash. One group who will be impacted heavily is those reliant on their state pension.
Because the Government announced last year that the triple lock will be suspended for the next financial year, the state pension is set to increase by 3.1 percent, in line with September’s inflation figure.
This is instead of an 8.3 percent increase, in line with the increase in average earnings last year.
However, with inflation in January reaching 5.5 percent and expected to rise further, those on the state pension will endure a real-terms cut to their income.
As a result, retirees in Britain face the worst disparity in their state pension payments when set against inflation since the triple lock was introduced over a decade ago.
This is according to Quilter,…
