Suspending the ‘triple-lock’ state pension pay rise pledge will save the Treasury £5.4billion next year.
Experts have criticized it, stating that it will be very difficult for Britain’s 12million pensioners.
Triple lock ensures that the state pension increases every year in line to the highest inflation, average earnings, or 2.5 percent.
Ministers have reneged on the promise for a year following the pandemic that distorted wage figures and showed earnings rose by more 8 percent.
Instead, pensioners can expect a rise of only 3.1% starting next April.
Budget papers stated that average earnings were being eliminated ‘to ensure that public finances remain sustainable and fair across all generations’.
There were also no increases for vital benefits such as winter fuel payment.
Ministers have dropped the triple-lock promise for a year following the pandemic that distorted wage figures to show earnings rose more than 8% (file image).
The warm home discount and cold weather payments will remain the same.
Former pensions minister Ros Altmann said: ‘There is absolutely nothing in the Budget for pensioners – especially the poorest.
“The Chancellor has a choice, and he has chosen not to listen to those who are in trouble.”
The report added: ‘This action will protect taxpayers from a significant fiscal pressure, while protecting pensioners from higher costs of living.’
According to the latest inflation figures pensioners can expect a pay increase of only 3.1%.
This is despite inflation expected to soar above 4% by the end of this yea
It means a retiree collecting the old state pension will receive an extra £4.25 a week, while someone claiming the new state pension will get an extra £5.55.