Martin Lewis hails state pension rise of 10.1 per cent as Chancellor promises 'compassion' in his budget

17 November 2022, 14:22

Money Saving Expert's Martin Lewis has said he is "very pleased" with some aspects of Jeremy Hunt's budget.

The Chancellor outlined his financial plans to the House of Commons on Thursday.

He announced a raft of tax hikes, claiming he "tried to be fair by following two broad principles" - making better-off households pay more and avoiding damage to growth.

One thing he announced was that both benefits and the state pension would increase in line with inflation - which was welcomed by Mr Lewis.

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"I am very pleased that both benefits and the state pension are being increased by the 10.1% September inflation rate," he tweeted.

"It only happens from next April, and it will still be hard for many, but if it was less than this it would've been devastating."

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Announcing that he would be protecting the pensions 'triple lock' - the mechanism by which state pensions increase with inflation - Mr Hunt said: "The cost of living crisis is harming, not just our poorest pensioners, but all pensioners.

"So because we've taken difficult decisions elsewhere today, I can also announce that we will fulfil our pledge to the country to protect the pensions triple lock."

He went on: "In April, the state pension will increase in line with inflation - an £870 increase, which represents the biggest ever increase in the state pension.

"And to the millions of pensioners who will benefit from this measure, I say - now and always, this government is on your side."

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Mr Lewis also reacted to the announcement from Mr Hunt that the national living wage would be increased.

Currently the minimum wage for over 23s is £9.50, but in April 2023 it will be hiked to £10.42 - an increase of 9.7 per cent.

Mr Lewis pointed out that the increase was still less than inflation, which hit 11.1 per cent on Wednesday.

He tweeted: "The National living wage is going up by slightly less than inflation, 9.7% taking it to £10.42/hr from April for over 23s (other rates for other ages going up similar percentage)".

Shadow Treasury Minister, Tulip Siddiq concerned budget will land on shoulders of 'working people'.

The increase to minimum wage was welcomed by the Living Wage Foundation, but the organisation said the rates would still be lower than the voluntary so-called real living wage of £11.95 in London and £10.90 outside the capital.

"There are now over 11,000 employers, committed to always paying their staff, including contractors like cleaners and security guards, the real Living Wage," said Katherine Chapman, director of the Living Wage Foundation.

"Living Wage Employers provide stability and certainty to the employees who will need it most ahead of a tough winter.

"This helps move us towards a high-wage, high-growth economy as employees earning a decent wage are likely to be more productive and able to spend in their local economies."