The Treasury is expected to spend £3.3bn on retired public servants’ pay in the 2022/23 tax year, rising to £6.2bn in 2023/24 and then £8.2bn in 2024/25, according to documents from the Office for Budget Responsibility published alongside the Autumn Statement this week.
Rocketing inflation over 10 percent means retired public servants will get the biggest pay rise in a generation, the Telegraph reports.
For those not reaping the rewards the cost of supporting the pension rises is set to double over the next three years.
All retired Government workers receive a pay rise every spring in line with the previous September’s inflation.
But the OBR’s numbers show the significant additional cost to the public purse, at a time when the burden of fiscal responsibility should be shouldered by us all.
Jeremy Hunt remained committed to the measure which links increases in the state pension every April with the highest of three markers, September’s inflation, wage growth or 2.5pc.
Shadow chancellor Rachel Reeves admitted she is “pleased” about the decisions the Government made on the triple lock and benefits.
(Ms Reeves) “I’m really worried about what’s going to happen to people’s living standards from April.”
She said Labour would not be laying out specific proposals for the economy until the next election, but added: “Even if you have a difficult fiscal inheritance, and we know that a Labour Government will have that due to the choices the Conservatives have made, you can still make different choices and prioritise different things.”
On Mr Hunt protecting the triple lock on pensions, she said: “It is right that the Chancellor increased the pensions and universal credit and disability pensions in line with the cost-of-living crisis.”
She added that she is still concerned with energy bills rising next year, but said: “I am pleased that those choices were made because that has caused a huge amount of worry for some of the most vulnerable people in our society.”
The above summary was derived from the story linked below