Autumn Statement: triple lock, social care and Solvency II

Triple lock re-instated means State Pension will rise by 10.1% in April 2023

Sarah Pennells, Consumer Finance Specialist at Royal London, said:

“The re-instatement of the triple lock is good news for all pensioners, but is particularly important for the 54% of pensioners who rely on it as their main source of income. The triple lock - a 2019 manifesto promise suspended last year because of Covid, means the State Pension will rise by the Consumer Prices Index inflation measure of 10.1%. This will increase weekly payments for the new State Pension from £185.15 to £203.85 from April 2023, taking the annual pension to £10,600.20, above £10,000 for the first time.

“The triple lock was introduced in 2010, when the basic State Pension was £97.65 a week and it was designed to ensure that the State Pension kept up with prices or earnings.

“The chancellor also announced that Pension Credit rates would rise in line with inflation. Pension Credit – a top-up benefit for pensioners on the lowest incomes, is one of the most under claimed benefits. Because it’s a gateway benefit to other help, such as with Council Tax, energy bills and housing costs, it can be worth an average of £3,300 a year.

“The State Pension age rise review,  published next spring could bring forward the timetable for increasing the State Pension age to 68 and potentially beyond.”

Social care costs 

Jamie Jenkins, Director of Policy & External Affairs at Royal London, said:

“The wait for the Government’s flagship cap on care home fees continues.

“It’s good to see additional funding made available for social care, but the perpetual delay in a policy to deliver certainty for people in England on care costs will be very disappointing for families trying to plan how to pay for it.

Solvency II

Jamie Jenkins, Director of Policy & External Affairs at Royal London, said:

“Royal London welcomes the proposed changes to Solvency II, which will continue to ensure that customers are protected by well-capitalised insurers and at the same time will allow the industry's capital to be used more effectively, investing in the infrastructure the UK needs to drive future growth and deliver on the country's net zero ambitions.”