How much will the State Pension increase by in April 2022
The state pension is increased every year in line with current trends in the economy. Whilst traditionally, the triple lock is used to establish these calculations, this system has been overridden the 2022/2023 tax year. This tax year will be determined by the double lock, which means that the state pension will be increased in line with inflation instead.
When does the state pension go up?
This will come into effect from Monday the 11th of April.
How much will pensions rise by?
Wages soared in 2021 due to people coming off furlough and returning to work. The result of this was a distortion in the UK earnings figures as they were quite high. Due to this, the government made the decision to defer the triple lock for the 2022/2023 tax year and use a double lock instead.
Therefore, instead of an 8% increase (an increase of about £14 a week for some), the increase in the state pension will be 3.1%, as announced by DWP in September 2021.
When will the triple lock return?
As of now, there is no official statement detailing the return of the triple lock. However, official statements all detail that the use of a double lock is ‘temporary’ and a ‘pause’ of its use.
What do the numbers look like?
In the table below, the change in earnings can be observed (if a full state pension is being received):
|
Tax year |
Amount |
|
2022/23 |
£185.15 a week (£9,628 a year) |
|
2021/22 |
£179.60 a week (£9,339 a year) |
It is important to note that the amount you will receive is dependent on your national insurance record that state pension age is reached.
State Pension rises since 2011
|
Financial year |
State pension rise |
Based on |
|
2011/12 |
4.6% |
RPI |
|
2012/13 |
5.2% |
CPI |
|
2013/14 |
2.5% |
2.5% |
|
2014/15 |
2.7% |
CPI |
|
2015/16 |
2.5% |
2.5% |
|
2016/17 |
2.9% |
Earnings |
|
2017/18 |
2.5% |
2.5% |
|
2018/19 |
3% |
CPI |
|
2019/20 |
2.6% |
Earnings |
|
2020/21 |
3.9% |
Earnings |
|
2021/22 |
2.5% |
2.5% |
|
2022/23 |
3.1% |
CPI |
Are there any state pension changes for British citizens working abroad?
Coming into effect in January 2022, British expats can’t count time working abroad in certain countries on their state pension records.
The following countries are affected:
- Australia
- Canada
- New Zealand
Speak to one of our experts today to discuss your possible pension options as an expat.
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