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2.5% pension increase is good news says Farron

October 14, 2014 11:48 AM

Save the chequePensioners will benefit from a 2.5 per cent increase in their state pension next year thanks to the Liberal Democrats' Triple Lock guarantee. South Lakes MP Tim Farron has welcomed this news.

Figures out today (14 October) show that inflation is below target meaning that the basic state pension will be boosted by 2.5 per cent next year.

The Triple Lock guarantee, introduced thanks to the Liberal Democrats in Government, means that pensions will increase with inflation, earnings or 2.5 per cent - whichever is highest - every year. The most that a pensioner can currently get is £113.10, so that should rise by £2.83 to £115.93.

Commenting on the inflation figures, Tim said: "This is good news for pensioners who will see a 2.5% increase in their pension. This is something I have pressed ministers to introduce and I am pleased that we have been able to deliver this in government. When I speak to residents, they do worry about a sustainable pension system, but more importantly having a liveable pension. Our triple lock should deliver that and will give everyone the dignity they deserve in retirement."

Liberal Democrat Chief Secretary to the Treasury, Danny Alexander added: "This below target inflation number is good news for everyone, but will help pensioners in particular as the Liberal Democrat flagship 'Triple Lock' policy will kick in to give an above inflation pension increase.

"The Triple Lock delivers a pension rise of whichever is the greater of average earnings, inflation or 2.5%.

"This means that next year the basic state pension will rise by 2.5% or £2.85 a week. With Liberal Democrats in Government the basic state pension has risen by over £950.

"This shows that pensioners are at the heart of our Liberal Democrat vision of a stronger economy and a fairer society.

"This is in stark contrast to life under the Conservatives who broke the link between pensions and earnings in the Thatcher years, and life under Labour when pensioners were insulted with rises as low as 75p."