Pensioners are guaranteed an increase of at least 2.5 per cent from next April under the triple lock
Andy Burnham has confirmed the state pension triple lock will remain in place under his premiership, guaranteeing millions of pensioners a payment increase from next April.
The Prime Minister, who delivered his first address from Downing Street yesterday after taking office, said Labour's manifesto commitment to retain the policy would be honoured.
Under the triple lock, pensioners receiving the new state pension who are aged 77 or younger by next April and have a full National Insurance record are guaranteed to receive at least £313 more a year.
Those receiving the basic state pension will receive a minimum annual increase of £240, provided they also have a complete National Insurance record.
The final increase is widely expected to be higher because the triple lock guarantees that the state pension rises each year by the highest of inflation, average earnings growth or 2.5 per cent.
Those who reached state pension age before April 2016 currently receive the basic state pension, worth £9,614.80 a year.
A 2.5 per cent increase would add £240.37 annually before any additional entitlements, such as the Second State Pension, are included.
People who reached state pension age from April 2016 onwards receive the new state pension, currently worth £12,547.60 a year.
Applying the minimum 2.5 per cent increase to the full new state pension would result in an annual rise of £313.69.
During his Labour leadership campaign, Mr Burnham defended the policy when responding to a Reddit user who questioned whether the triple lock should be scrapped.
The Makerfield MP said: "I appreciate there's a lot of debate about this but it is important that the commitment in the manifesto stands."
His position comes despite repeated warnings from the Office for Budget Responsibility that the long-term cost of the policy is placing increasing pressure on the public finances.
The watchdog has previously warned the triple lock could place the UK's finances on an "unsustainable path" because of the rising cost of annual increases.
The increase due next April is expected to be above the 2.5 per cent minimum because both average earnings growth and inflation remain above that level.
This year's increase saw recipients of the full new state pension receive an annual rise of around £575 after average earnings growth of 4.8 per cent triggered the triple lock.
If earnings growth or inflation again exceeds 2.5 per cent when the relevant figures are confirmed later this year, pensioners receiving both the basic state pension and the new state pension could receive a larger increase than the guaranteed minimum.
The final uplift will be confirmed in the autumn once the relevant earnings and inflation figures have been published.
Until then, the minimum increases of £313 for the full new state pension and £240 for the full basic state pension remain guaranteed under the Government's commitment to retain the triple lock.
