The state pension will increase by £450 in April, Reeves confirmed

The state pension will rise by around £450 next year, Rachel Reeves has confirmed as she ruled out the restoration of winter fuel payments.

The chancellor said she would announce the exact level of the state pension, determined by the ‘triple lock’ mechanism, at the October 30 budget.

She stressed that the increase would more than offset the loss of the winter fuel payment – ​​worth £200-300 a year – for most pensioners.

Asked if she was willing to compromise on the cut, Reeves told reporters: “When I announced that difficult decision in July, I did so because of the legacy we faced from the previous administration, a black hole of £22 billion in public finances, and not because of just one year, but years into the future.

“And in July I announced £5.5 billion in savings to try to reduce that. But as you can see, there is still a gap between the black hole we inherited and what we should do to close that black hole.”

But she promised that pensioners would still be better off as a result of a state pension that is £900 higher this year than last year and will rise again next year – the Chancellor said: “I will announce the increase in next year’s state pensions. pension at the Budget, but next year it is likely to be around £450 more.

“So you can see that, because of the commitment to the triple lock, the state pension will increase by more than winter fuel every year. I think it will increase by £1,700 over the course of this Parliament.”

The triple lock policy states that every year the state pension increases by the highest amount, based on inflation, average income growth and 2.5 percent.

Next year this will be determined by wage growth, which is 4 percent, meaning that the state pension will exceed inflation.

Reeves also pointed out that poorer pensioners were encouraged to claim a pension credit, which entitles them to an income supplement as well as the winter fuel payment.

Campaign groups, trade unions and some MPs have criticized the government for its decision to cut benefits for 90 percent of pensioners. They claim that older people who are just above the income threshold for a pension credit are at risk of falling into poverty without a winter fuel payment, which is worth £200 a year or £300 for the over 80s.