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06 December 2022

Pensions and the Autumn Budget 2022

On 17 November 2022, Chancellor Jeremy Hunt announced the Autumn Budget under the new Prime Minister, Rishi Sunak.

He announced in his opening remarks: “In the face of unprecedented global headwinds, families, pensioners, businesses, teachers, nurses and many others are worried about the future. So today we deliver a plan to tackle the cost-of-living crisis and rebuild our economy. Our priorities are stability, growth and public services.”

He also said, within his closing remarks, that the government would protect the pensions’ Triple Lock.

The ‘Triple Lock’ was introduced in 2010, and designed to ensure the State Pension value would not be impacted by cost of living rises.

Autumn budget breakdown for pensions

  • In April 2023, the State Pension will increase in line with the ‘Triple Lock’ — this means state pensions will rise in line with inflation, which was 10.1% in September. This will lead to a record increase in State Pensions. State benefits will also rise in line with inflation
  • The outcome of the review of the State Pension age is to be published early 2023. ‘State Pension age’ means the age you can start receiving your State Pension from the government. This is separate from your workplace pension or any other personal pensions you may have. Reviewing the State Pension age came as a result of the latest life expectancy data and other factors.

    The first review of the State Pension age was undertaken in 2017, determining that the next review should consider whether the increase to age 68 should be brought forward to 2037-39 before any changes to the current legislation.

    The current State Pension age is 66. Two more increases have already been set out in legislation, including a rise to 67 for those born on or after April 1960, and also a rise to 68 between 2044 and 2046 for those born on or after April 1977.
  • The income tax personal allowance, higher rate threshold, main National Insurance (NI) thresholds, and the inheritance tax thresholds will be frozen until April 2028. The temporary 1.25 percentage point increase in National Insurance rates was reversed for the rest of the financial year (ends 6 April 2023) from 6 November 2022.