Chancellor Rachel Reeves confirms state pension set to rise by hundreds of pounds

The Chancellor said the state pension is set to go up by more than the Winter Fuel Payment, which is worth up to £150, every year during this Parliament.

The Chancellor has today confirmed the upcoming changes to pensions and indicated that the exact increase will be revealed in the Budget on October 30, thanks to the government's commitment to the pension Triple Lock, a policy brought in by the Conservatives. However, when questioned about potential scaling back of the plans to cut winter fuel payments for numerous pensioners, Ms Reeves was definite in her stance during an international investment summit in London.

She recalled her July announcement about the tough decision made due to a £22bn deficit left by the previous administration, disclosing that she had outlined savings of £5.5 billion to mitigate this fiscal gap. She continued to explain that despite these measures, there remains a shortfall between what was inherited and what is necessary to bridge the financial void, reports the Express.

Moreover, Ms Reeves reiterated the government's pledge to uphold the Triple Lock throughout the current Parliament. Highlighting the benefits of this promise, she said: "This Government has committed to the triple lock for the duration of this Parliament."

"The triple lock means that this Winter, the new state pension is worth £900 more than it was last winter - so at least three times higher than the value of the Winter Fuel Payment per household."

Additionally, she gave insights into the next year’s state pension increment, projecting, "And I will announce the increase in next year's state pension at the budget, but it's likely to be in the region of £450."

Concluding, she underlined the implications of the Triple Lock for pensioners' futures: "So you can see because of the commitment to the triple lock, the state pension will go up by more than winter fuel every year."

"I think it's expected to go up by £1,700 during the course of this Parliament."

Ms Reeves stated. She also mentioned that more pensioners are applying for pension credit.

"Since we launched that campaign, applications for pension credit are up two or three fold, which is really encouraging because that means that we'll have more people who actually keep the winter fuel payment," she added. The triple-lock pledge guarantees that state pensions will increase by 2.5%, average earnings or inflation, whichever is higher.