MILLIONS of retirees could be £1,000 better off after the government announced a major state pension change.
The government has confirmed the triple lock will return next year.
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This means pension payments will rise in 2023 by whichever is highest: earnings, inflation or 2.5%.
And with inflation expected to reach more than 10% this year, that could see some pensions increase by around £1,000 a year.
If you are on the new state pension, £185.15 a week, a 10% rise would see you earn an extra £18.52 a week.
This works out as just over £960 a year.
But if that figure goes as high as 11% your state pension would go up by £20.37 a week, or £1,059 a year.
This is the maximum amount extra you would receive depending on forecasted inflation rates, however you may not receive the above amounts.
What you get will depend on how much state pension you get a week – if you receive less than £185.15 a week, your increase based on inflation will obviously be lower.
If you don’t know how much state pension you are entitled to, you can use the government’s forecast tool.
The triple lock was suspended last year due to the coronavirus pandemic and reduced to a double lock.
But its return will be welcome news for many pensioners who may be concerned about rising energy bills, and soaring fuel and food costs.
Am I eligible for a state pension?
There are two different types of state pension on offer to retirees – the new state pension and the basic state pension.
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You’ll be eligible for a new state pension if you’re a man born or after April 6, 1951, or a woman born on or after April 6, 1953.
The state pension age currently stands at 66, but this is due to rise to 67 by 2028.
If you reached state pension age before April 6, 2016, you’ll be eligible for the basic state pension.
You’re eligible for this if you are a man born before April 6, 1951, or if you’re a woman born before April 6, 1953.
For more information, you can visit the government’s website.
What other help is on offer?
Even with the government’s recent triple lock announcement, some retirees will be concerned about how they are going to pay their way through the winter.
But there is extra help on offer.
The government’s cost of living package, announced last month, will see many pensioners offered targeted support.
Those eligible will be in line for a one-off £400 payment through the Energy Bills Support Scheme.
And those on Pension Credit, a means-tested benefit, will receive the £650 cost of living payment in two instalments.
The government has already announced the first payment of £326 will be paid between July 14 and the end of the month.
The second is due to be made in the autumn.
Some eight million pensioners will also be in line for an extra £300 payment in November or December.
It will go to pensioners already receiving the Winter Fuel Payment and should be made by direct debit.
And depending on which council authority you live under, you could be entitled to help under the Household Support Fund (HSF) as well.
The HSF is a pot of money which is allocated from the government to local councils, who then decide who should benefit from any financial support.
Not all residents can receive the support due to eligibility requirements, so it’s best to check your local council’s website.
Some councils are giving out help automatically, while in other areas you’ll need to apply.
In Knowsley, around 6,000 residents receiving a state pension and Pension Credit will benefit from extra cash.
