Rachel Reeves confirms state pension set to rise by hundreds of pounds | Politics | News

The Chancellor confirmed the changes today and said she would announce the exact amount in the Budget on October 30.

The increase is made possible because the government has committed to the pensions Triple Lock – introduced by the Conservatives.

But her remarks appear to have slammed the door shut on any hope that she might water down the decision to strip winter fuel payments from millions of pensioners.

Asked if there is any form of tapering to help OAPs, Ms Reeves told reporters at an international investment summit in London: “In July, when I announced that difficult decision, I did so because of the inheritance that we faced from the previous Government – a £22bn black hole in the public finances.

“And in July, I announced five and a half billion pounds worth of saving to try and bring that down.

“But as you can see, there is still a gap between the black hole that we inherited and what we would need to do to close that black hole.”

She added: “This Government has committed to the triple lock for the duration of this Parliament.

“The triple lock means that this Winter, the new state pension is worth £900 more than it was last winter – so at least three times higher than the value of the Winter Fuel Payment per household.

“And I will announce the increase in next year’s state pension at the budget, but it’s likely to be in the region of £450.

“So you can see because of the commitment to the triple lock, the state pension will go up by more than winter fuel every year.

“I think it’s expected to go up by £1,700 during the course of this Parliament.”

Ms Reeves said more pensioners are also taking up the offer of pension credit.

“Since we launched that campaign, applications for pension credit are up two or three fold, which is really encouraging because that means that we’ll have more people who actually keep the winter fuel payment,” she said.

The triple-lock pledge ensures state pensions go up by 2.5%, average earnings or inflation, whichever figure is higher.