Triple Lock increase ‘wiped out’ by rising food and energy costs

  • Under the Triple Lock guarantee, the State Pension will rise by 10.1% from 10th April 2023, adding nearly £19 a week to the full state pension – an extra £972 a year
  • However, food price inflation alone has added £837 a year on average to household bills1
  • While rising energy costs has added £1,223 to the average energy bill for a UK household since April 20222

Andrew Tully, technical director, Canada Life commented:

“Pensioners will be feeling apprehensive and worried, despite the triple lock increase adding £972 a year to those fortunate enough to receive the full state pension. Even a household where a couple both receive the full state pension will see the triple lock increase wiped out by the price rises we are experiencing.

“It’s also worth remembering many pensioners don’t receive the full state pension and those who claimed their state pension before April 2016 under the old system will receive less – around an extra £14 week, or £746 per year.

“This is a difficult time for many but especially those households on fixed-incomes, typically pensioners. Ensure you or your relative is claiming all of  the financial support to which you or they are entitled, for example pension credit. Reach out to the charitable organisations who help to support the older and more vulnerable, and as relatives or neighbours of the elderly, keep an eye out for them and help where you can.”

 

ENDS

Enquiries:

Press enquiries should be directed to:

Elle McAtamney at Canada Life, elle.mcatamney@canadalife.co.uk

Notes to editors:

  1. Source: Kantar  https://www.ft.com/content/9efcc6b4-688b-4004-bb87-440e0438da79
  2. Source: Under the energy price guarantee, average household energy costs for dual fuel paid via direct debit has been capped at £2,500 a year - HoC Library https://commonslibrary.parliament.uk/research-briefings/cbp-9491/

About Canada Life:

Canada Life is part of a group of companies controlled by Great-West Lifeco Inc., a diversified financial services holding company headquartered in Winnipeg, Canada. Through its subsidiary companies, Lifeco has operations in Canada, the United States, and Europe. Great-West Lifeco and its insurance subsidiaries have received strong ratings from major rating agencies.  Great-West Lifeco has over 30 million customers worldwide and £1.341 trillion assets under administration (as at 31 December 2021).

Canada Life Limited began operations in the United Kingdom in 1903 and looks after the retirement, investment and protection needs of individuals and companies alike. As well as providing stability and security through its individual contracts, Canada Life Limited has grown to become the leading provider of competitively priced group insurance solutions. Canada Life acquired Retirement Advantage on 3rd January 2018 for an undisclosed sum. The acquisition added over 30,000 retirement income and equity release customers and more than £2 billion of assets under management including a £1.5 billion block of in-force annuities to Canada Life.

Canada Life Limited, registered in England no. 973271. Registered office: Canada Life Place, Potters Bar, Hertfordshire EN6 5BA.  Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

www.canadalife.co.uk