The Government will abandon its Triple Lock on pensions for one year, effectively reducing it to a double lock, to avert an increase in the State Pension of up to 8%.

The Government will suspend the Triple Lock rule so the State Pension rise is no more than the higher of inflation - 2% at present - or 2.5%.

Under the Triple Lock rule, the State Pension is increased annually by the highest of earnings growth, price inflation or 2.5%.

Pressure has been growing on Chancellor Rishi Sunak to review the Triple Lock to avoid a record rise in the State Pension due to a bounceback in average earnings following the easing of pandemic restrictions.

Work and Pensions Secretary Therese Coffey confirmed today in the Commons that the average earnings component of the lock system would be “disregarded” in the 2022-23 financial year.

Instead, the rise will be the higher of the consumer inflation rate or 2.5%, she said.

With inflation dipping last month to 2% it means the rise in the State Pension is likely to be in the region of 2% to 4% but this will depend on the rate of inflation at the time of the announcement.

Ms Coffey said: "Tomorrow, I will introduce a Social Security Uprating and Benefits Bill for 2022-23 only. It will ensure the basic and new state pensions increase by 2.5% or in line with inflation, which is expected to be the higher figure this year and, as happened last year, it will again set aside the earnings element for 2022-23 before being restored for the remainder of this Parliament."

Sir Steve Webb, former Pensions Minister and consultant at actuarial pensions firm LCP, said the move struck the “right balance.”

Sir Steve said: “With the earnings figures showing a spike because of the pandemic it is understandable that the Government has taken the decision to suspend the triple lock for one year only.  

“But it is very welcome that they have recommitted themselves to the policy for future years.  The UK state pension remains relatively low by international standards and many women in particular depend on the state pension for a large part of their income in retirement.  To relax the rules on a one-off basis because of the distortions caused by the pandemic but to reinstate the policy for future years strikes the right balance.”