State pension set to rise by more than £400 next year

The state pension is set to rise by four per cent in April, giving an extra £460 a year to recipients.

As a result of the triple lock, the payment rises by the highest of average weekly earnings, inflation or 2.5 per cent.

Figures published on Tuesday indicated that average weekly earnings increased by four per cent in the three months to July.

While inflation data has not yet been published for September, in July it stood at 2.2 per cent, according to the Office for National Statistics (ONS).

The latest boost to pensions means the weekly payment will increase from £221.20 a week to £230.05 a week, handing them an extra £8.85 each week from April. Last year pensioners got a rise of 8.5 per cent.

It comes amid mounting pressure on the government to scrap its plan to axe winter fuel payments for millions of pensioners.

The move will see around 10 million people lose the payment of up to £300 to help with energy costs.

The decision came as part of a series of spending cuts to address a black hole in the public finances left by the previous Conservative government announced in July by the chancellor.

Analysis published in 2017, when Sir Keir Starmer was in the Shadow Cabinet, warned that Conservative plans to cut the fuel allowance for ten million pensioners would increase excess deaths by 3,850 that winter.

The proposal, put forward by Theresa May’s government, was dubbed the “single biggest attack on pensioners in a generation in our country”.

Business Secretary Jonathan Reynolds on Tuesday refused to guarantee that no pensioners would die of cold as a result of the government’s plans.

“No-one should die of cold in this country,” the minister told Sky News.

Repeatedly asked whether he could guarantee that not one pensioner would die, Mr Reynolds said: “I can guarantee we’re doing everything we can to make sure that not only the state pension is higher and everyone is better off but that support is targeted where it needs to be.”

MPs showed “strong support” for Rachel Reeves’ plan to scale back winter fuel payments during a meeting of the Parliamentary Labour Party on Monday, a spokesperson for the chancellor said.

This comes despite speculation that as many as 50 Labour MPs could rebel over the legislation.

Ms Reeves told the meeting that she is “not immune” to concerns over the plans, saying: “I understand the decision that this government have made on winter fuel is a difficult decision. I’m not immune to the arguments that many in this room have made. We considered those when the decision was made.”

Speaking ahead of Tuesday’s state pension boost, the chancellor pointed to the rise by £900 of the new state pension compared to a year ago, adding: “Tomorrow, we get data for earnings growth, which will inform the increase in the pension next year. We are protecting the triple lock, not just for this year, but for the duration of this Parliament.”

She said there would be “more difficult decisions to come.”