State pensions increase
State pensions will rise by 3.9% from next April.
The so-called triple lock gives pensioners a rise matching that of average earnings, inflation or 2.5%, whichever is the highest. Average earning grew 3.9% in July, while inflation under the Consumer Prices Index rose by 1.7% in September. So the rise in average earnings is applied to state pensions.
The new state pension, payable from 2016, will increase from £168.60 to £175.20 a week (figure rounded up to nearest 5p). That means an extra £343 a year.
Meanwhile, the basic state pension for a single person will increase from £129.20 to £134.25 a week – an extra £263 a year.
However, 1.7 million single pensioners aged over 75 will be robbed of most of that £263 increase if they lose the right to a free TV licence and have to pay £150 next year.