The state pension is on course to top £10,000 a year if the Government keeps its promise to reinstate the ‘triple lock’ on annual increases.
The popular guarantee means the state pension is raised by the highest of inflation, wages growth or 2.5 per cent – but it was ditched last year because the pandemic temporarily skewed the earnings figure.
The inflation rate will be highest this year, so the state pension increase should be decided by the September CPI figure, which is due out on 19 October.
Popular guarantee: State pension is on track to rise 10% if new PM Liz Truss keeps triple lock pledge
Inflation in August, published last week, was running at 9.9 per cent, down from 10.1 per cent. The latest earnings growth figure, based on total pay including bonuses, was 5.5 per cent.
But older people waiting anxiously to find out what state pension increase they will get next April might find it still lags behind prices.
Inflation could stick at around 10 per cent during the key…