With so much going on in the news at the moment you may have missed the important announcement of the September CPI figure; the September CPI figure is becoming more important as it is the main index used to calculate increases in some benefits and allowances.
The September 2019 CPI figure was announced this week and is 1.7%, which means a lesser increase in some state benefits and allowances from next April than this April; the RPI figure is less widely used and is 2.4% for September 2019.
As a result of this we expect the Lifetime Allowance (LTA) for pension purposes, to increase to £1.073m from 6th April 2020.
Thanks to the Triple Lock method which guarantees that the State Pension will increase in line with the highest of inflation, earnings or 2.5%, pensioners will get an inflation-busting rise in line with July’s average weekly earnings growth next year (3.9%) with the New State Pension going from £168.60 to £175.20 per week.
As always, please don’t hesitate to contact us if you have any queries.