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<p>Due to the unprecedented economic circumstances, average earnings fell last year.
Under current legislation, this would mean a freeze to State Pensions. However, the
Government took action by legislating to give the Government the ability to increase
State Pension and Pension Credit rates for 2021/22. This enabled the Government to
honour its manifesto commitment to the Triple Lock which uprates the State Pension
each year by the highest of average earnings growth, price inflation and 2.5%. As
announced by the Secretary of State for the Department for Work and Pensions on 25
November, the new State Pension and the basic State Pension will both be increased
by 2.5% this April.</p><p> </p><p>As with all aspects of Government policy with major
spending implications, any decisions on future changes to the Triple Lock will be
taken as part of the annual Budget process in the context of the wider public finances.
Final decisions on uprating policy for pensions and welfare benefits are taken by
the Secretary of State for Work and Pensions through her annual uprating review.</p>
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