State pension increase explained as Rishi Sunak asked whether pensions would rise by 8%

“With regards to pensions uprating, there is a statutory review which is carried out later on in the year, which is then brought to Parliament.”

As he was pressed further, Mr Sunak continued: “What you’re referring to are forecasts, but as we’ve seen over the past 12 months, we’re in a period of extraordinary economic uncertainty, and lots of the forecasts we’ve seen have moved around and changed.

“I’d put that in the bucket right now, that’s speculation, and when we get to the autumn, there is a formal review that is done.”

So, how does the triple lock mechanism work?

The three triple lock factors are:

  • Earnings – the average percentage growth in wages (in Great Britain)
  • Prices – the percentage growth in prices in the UK as measured by the Consumer Prices Index (CPI)
  • 2.5 percent

If a person has a protected payment, it increases each year in line with the CPI.

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