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UK will not raise state pension in line with earnings next year - minister

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By Reuters
UK will not raise state pension in line with earnings next year - minister
UK will not raise state pension in line with earnings next year - minister   -   Copyright  Thomson Reuters 2021
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LONDON – Britain will not raise state retirement pensions in line with earnings next year, but will instead increase them by the rate of inflation or 2.5%, whichever is higher, work and pensions minister Therese Coffey said on Tuesday.

Coffey told parliament she would introduce legislation to override a “triple-lock” formula which would have seen state pensions rise by 8% or more next year, due to an “irregular statistical spike” in earnings caused by the COVID-19 pandemic.

“For 2022-23 it will ensure the basic and new state pensions increase by 2.5% or in line with inflation, which is expected to be the higher figure this year,” she said.