The policy, which increases pensions by whichever is highest of inflations, earnings growth or 2.5%, will give pensions a £2.85 weekly increase from next April. And around 900,000 of the poorest pensioners will benefit from an increase in the standard minimum guarantee for Pension Credit, which is rising to £151.20.
Announcing the increase, Webb said: ‘The triple lock is one of the defining policies of this government – a policy which rewards those who have worked hard and saved hard throughout their lives.’
The state pension was now at its highest relative to earnings since 1992, he added.
‘With inflation remaining low by historic standards and the rise in average earnings at around 0.6%, under previous arrangements the basic state pension may only have gone up by around 70p per week this year – the kind of insulting treatment of pensioners which we won’t allow to happen.’
The Department for Work and Pensions said the cost of raising the standard minimum guarantee for Pension Credit would be offset by an increase in the Savings Credit threshold of 5.1%.
