The Bank of England predicts a two percent fall in wages in the current year, followed by a four percent increase next year as masses of workers come off furlough and economic activity starts up again.
If the Bank of England’s predictions are true, this would prompt a 2.5 percent rise in the State Pension next year, followed by a five percent change in 2022, giving a two year hike of an unprecedented 7.6 percent.
It would also mean the State Pension would cost the Government £3billion more in 2022, and an extra £2.1billion more in 2021.
In April 2020, the State Pension increased by 3.9 percent in its biggest rise since 2012 in accordance with the triple lock system.
Published at Wed, 23 Sep 2020 20:48:32 +0000