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State pension and lifetime allowance increases for 2020/21

Many rates and benefits increase each April based on the annual rate of CPI to the previous September. This rate has now been announced for September 2019 as 1.7%.

The new state pension and the basic state pension element of the old state pension are currently subject to increases under the ‘triple lock’ guarantee meaning that the annual increase rate is the higher of this CPI figure, the average earnings increase in the three months to July and 2.5%. As the average earnings increase was the highest of these figures, at 3.9%, this will be the figure used for these state pension increases next April (the additional state pension under the old system and any protected payment under the new system increase with CPI rather than under the triple lock so these elements will increase by 1.7% in April).

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