Experts have said that if these payments had been made in April, they would not have been included in the calculations which determine the state pension increase
If the higher figure is used, the full state pension for new claimants will rise from £203.85 a week to £221.20 Under the government’s triple lock commitment, the state pension is increased by the highest of September’s inflation figure, average annual wage growth or 2.5 per cent, and after the inflation element was confirmed as 6.7 per cent this morning, the annual earnings element – which is higher – is set to be used.
Experts have said that if these payments had been made in April, they would not have been included in the calculation, and so the: “If one-off bonus payments had been made in April or earlier rather than June so they were not included in the May-July earnings numbers, then earnings would not have spiked at this particular point which generally determines pension indexation.
If the higher figure is used, the full state pension for new claimants will rise from £203.85 a week to £221.20. If the lower figure is used, those in receipt will lose £74 a year. But experts have said this decision won’t be taken likely as it would be very unpopular with a key voter base.yesterday that it would damage the government’s credibility if they did not uprate by the full 8.5 per cent figure.
It’s not clear exactly how much of the 0.7 percentage point difference between the 7.8 per cent rise and the 8.5 per cent rise is down to the public-sector bonuses, though it is thought that the extra increase could contribute to an extra cost of hundreds of millions of pounds on the State Pension, and government sources did not query this figure when it was put to them.
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