The state pension triple lock has been confirmed to return in April 2023, to the delight of millions of older people. It ensures the sum increases each year by whichever is the highest of 2.5 percent, inflation or average earnings.
Chancellor Jeremy Hunt has confirmed the triple lock will deliver a 10.1 percent boost in line with September 2022’s CPI inflation figure.
It will represent the biggest ever boost to the state pension, with an average £870 rise, the Chancellor added.
However, while the new state pension will be lifted above £10,000 for the first time, it is not good news for everyone.
Most pensioners at present do not qualify for the new state pension, as it is only paid to those who retired after April 6, 2016.
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Pensioners who retired before this date will receive the old basic state pension instead, which is a lower sum.
The full new state pension is set to rise from £185.15 to £203.85 per week, offering some £10,600 per year.
Some may get less than the full new state pension if they were contracted out before April 6, 2016.
However, when it comes to the basic state pension, the rise is slightly different.
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The sum is set to rise from £141.85 to £156.20 per week, delivering roughly £8,122 annually.
It means older pensioners are essentially worse off when it comes to their state pension – and many are frustrated as a result.
Recently, a Parliament petition called for “pension parity” for men and women born before 1951 and 1953.
The creator of the petition explained: “The gap of £2.5k between old/new state pensions is an absolute scandal.
“I missed the new pension by 14 days costing me £2.5k a year. This disparity has led to pauper pensioners.”
However, the petition did not reach the required signatures needed to progress to a Government response within the allotted six month period.
A DWP spokesperson previously told Express.co.uk: “This year we will spend over £110billion on the state pension.
“The full yearly amount of the basic state pension is now over £2,300 higher than in 2010, with 400,000 fewer pensioners in absolute poverty after housing costs in 2020/21 than in 2009/10.”
The DWP also previously explained the “vast majority” in receipt of the older sum also get additional income from either an occupational or private pension, if they were contracted out, or the Additional state pension.
Some pensioners may be entitled to a combination of the two.