The old State Pension system (for those who reached State Pension age before 6 April 2016) consists of two tiers: the Basic State Pension and the Additional State Pension. The Additional State Pension is an earnings-related entitlement consisting of State Second Pension (S2P) or its predecessor the State Earnings-Related Pension Scheme (SERPS).

The Basic State Pension is subject to the Triple Lock, ensuring that it rises by whichever is higher out of CPI inflation, average wage growth, or 2.5 per cent.

Unlike the Basic State Pension, the Additional State Pension is only indexed in line with CPI inflation and is not subject to the Triple Lock. Therefore, while the Basic State Pension rises by at least 2.5 per cent each year, the Additional State Pension rises by the rate of CPI inflation in the reference period, which may be lower than 2.5 per cent. The reference period is the year to the previous September. In the current climate, CPI inflation is outstripping both wage growth and 2.5 per cent.

The Government remains committed to keeping the Triple Lock in place. This means that until the end of the Parliament, the State Pension will rise by whichever is highest of 2.5 per cent, average wage growth, or inflation.

It is important to note, however, that whilst the Additional element is not uprated in line with the Triple Lock, its link to inflation means that its real value should remain steady over time.