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2d ago

Triple Lock Pension Costs To Reach £15.5bn By 2030 As Taxable Pensioners Top 8.7m

After April’s 4.1% rise lifted the full new State Pension to £230.25 per week, frozen tax thresholds threaten to draw almost nine million pensioners into the income tax net

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Dennis Reed is director of the Silver Voices campaign group (Photo: Andrew Stenning)
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Overview

  • The triple lock sets annual State Pension increases at the highest of inflation, average earnings growth or a 2.5% floor
  • April’s adjustment delivered a 4.1% boost that brought the full new pension rate to £230.25 weekly
  • The Office for Budget Responsibility warns the policy could cost £15.5 billion per year by 2030, triple its original projection
  • HMRC data shows 8.7 million pensioners are expected to pay income tax in 2025/26 as the frozen £12,570 allowance is eroded
  • Experts advocate exploring means testing, Pension Credit expansion or raising the pension age once the current Parliament concludes