The Office of National Statistics (ONS) has released an average earning figure of 5.5 per cent for May to July 2022 that locks in the earnings element of the state pension triple lock, according to Aegon.
Between May and July 2022, employees’ average total pay increased by 5.5 per cent, including bonuses, and regular pay increased by 5.2 per cent.
Aegon head of pensions Kate Smith says: “Today’s average earning figure is important for pensioners as it is used for one of the measures in the state pension ‘triple lock’ formula. Under the triple lock, the state pension rises annually at the highest of earnings growth (total pay for three months to July), price inflation (September CPI figure) or 2.5 per cent a year.
“The government has previously committed to reinstating the triple lock after suspending the earnings element for 2022-23 due to distortions caused by the covid-19 pandemic.
“With inflation into double-digits, average earnings (total pay) of 5.5 per cent isn’t expected to be the deciding factor in next April’s state pension increase. The state pension is likely to increase by around double this at over 10 per cent, confirmed in September’s inflation figure published next month.
“While Prime Minister Truss committed to reinstating the triple lock in the immediate term during her leadership campaign, questions will remain over its affordability and whether the triple lock will survive in its existing form in the Manifestos of all parties ahead of the next General Election.”
