The single-tier pension: a simple foundation for saving
Supporting pensioners has been a key Government priority since coming to office: enshrined in the coalition agreement is the commitment to protect the basic State Pension by the triple lock – increasing its value by the highest of price inflation, earnings growth or 2.5 per cent.
In September 2012, the reference point for considering the level of the 2013/14 benefits, both price inflation and earnings growth were below 2.5 per cent for the first time since the triple lock was introduced. From April 2013, the triple lock guaranteed minimum will therefore be engaged and the basic State Pension will be increased by 2.5 per cent. As a result the basic State Pension will represent a higher share of average earnings than at any time since 1992.