Q. I keep reading of the “Triple Lock” for state pensions, it looks like it is a good thing, but what does it mean?
A. The triple lock was introduced by the coalition in 2010 and in simple terms is a guarantee to increase the state pension every year by the higher of inflation, average earnings or a minimum of 2.5%. The Triple Lock has become something of a political football and many commentators predicted it would not survive past 2015 due to the costs of providing such a guarantee. However following the election earlier in the year the government announced it would keep the Triple Lock for another 5 years. The Government Actuary’s Department has recently warned that the costs of maintaining the Triple Lock could be “significantly greater” than expected!
Q. I have heard that I might be eligible for free childcare, and that the current scheme is being doubled, is this correct?
A. Free childcare for 3 and 4 year olds of up to 570 hours per year (usually taken as 15 hours per week for 38 weeks of the year) is available for working parents. You can also get free childcare for 2 year olds in certain circumstances. The free entitlement does not affect any means tested benefits. From September 2017 the free childcare entitlement will be doubled from 15 hours to 30 hours a week. The government is also intending to implement this extension of free hours early in some areas from September 2016. More information can be found at: https://www.gov.uk/find-free-early-education
If you have a question you would like Trevor to answer, please email it to: yourmoney@rwpfg.co.uk or post it to Your Money, Rutherford Wilkinson Ltd, Northumbria House, 21-23 Brenkley Way, Blezard Business Park, Newcastle upon Tyne, NE13 6DS.
