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Chancellor Jeremy Hunt confirmed that the triple lock on pensions would be honoured, with state pensions increasing from April 1.
Under the triple lock – which guarantees an increase in line with average earnings, inflation or 2.5%, whichever is highest – pensions have increased by 8.5 per cent.
Opening last year’s autumn statement, Mr Hunt said: “After a global pandemic and energy crisis we have taken difficult decisions to put our economy back on track.
“We have supported families with rising bills, cut borrowing and halved inflation.
“Rather than a recession, the economy has grown. Rather than falling as predicted, real incomes have risen.
“Our plan for the British economy is working. But the work is not done.”
The Chancellor went on to announce plans to honour the triple-lock on pensions in line with an increase in wages.
He told MPs: “The triple lock has helped lift 250,000 older people out of poverty since its inception in 2011.
“It has been a lifeline for many during times of inflation.
“We honour our commitment to the triple lock in full. We will increase the new state pension by 8.5 per cent, worth up to £900 more a year.”
Millions of workers set for April pay rise
The National Living Wage has increased by more than £1 an hour, from £10.42 to £11.44.
Eligibility for the National Living Wage will has also been extended by reducing the age threshold to 21-year-olds for the first time.
The Department for Business and Trade estimates 2.7 million workers will directly benefit from the 2024 National Living Wage increase.
Speaking in November, Mr Hunt said: “Next April all full-time workers on the National Living Wage will get a pay rise of over £1,800 a year. That will end low pay in this country, delivering on our manifesto promise.
“The National Living Wage has helped halve the number of people on low pay since 2010, making sure work always pays.”
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