DWP claimed the figures showed that pensioners saw their income grow in real terms for the first time in three years, as a result of the triple lock protection of the state pension and more older people staying in work.
The weekly income rise beat inflation, with state benefits accounting for 44 per cent.
The government’s state pension triple lock ensures that pensioner incomes are now protected against inflation, increasing each year by whichever is the highest out of prices, average earnings or 2.5 per cent.
Steve Webb, Liberal Democrat minister for pensions, said: “The triple lock has marked a profound shift in how the state supports pensioners. It means that 12.7m people will be more than £400 a year better off by the end of this parliament.”
Meanwhile, Pitmans Trustees has warned that pension schemes will “need to move quickly” to develop more robust strategies to deal with an imminent rise in interest rates.
Colin Richardson, client director at Pitmans, said: “Schemes need to be aware of exposure to duration risk. Existing investment de-risking strategies may become more active, depending on base rate effects on longer-term yields, and asset allocation triggers will lead to more investment switches.”
