The recent media coverage regarding the ‘Triple Lock’ has created some concern over how the State Pension will be increased next year. It has also prompted questions as to if and how this might relate to Armed Forces pensions.
The ‘Triple Lock’ applies to the State Pension and is little more than a cross party manifesto promise. It is for this reason that it was so easily suspended last year. Public Sector Pension Scheme increases, on the other hand, are underpinned by legislation (Pensions (Increase) Act 1971 and Section 59 of the Social Security Pensions Act 1975). The latter provides for public service pensions to be up-rated at the same time and by the same percentage as the increase in the additional pension provided under the State Earnings Related Pension Scheme (SERPs), which is based on the September-to-September increase in the Consumer Prices Index (CPI).
Whilst the Government ponders the future of the triple lock, (and we have no insight into this), we have seen no suggestion that Public Sector Pensions will not be increased from April 2023, in line with the latest (September) rate of CPI (10.1%).
