There has been a remarkable turnaround in the fortunes of the country in the past three months. The country was headed for a damaging recession as a “doom loop” of negative economic developments looked likely to engulf it.

Then the IMF produced a report in which it predicted that the UK would not fall into recession this year and the ONS updated its data on the country’s post-Pandemic performance and suddenly confidence is beginning to flow again.

Yesterday’s employment report for August showed that wages have finally caught up with prices and both should now begin to increase in unison.

Average wages rose by 8% annually which is likely to be the highest of the three measures which determines the level of the increase in the state pension and other benefits from next April.

The “Triple Lock” under which benefits increase each year by the highest of average wages, inflation and 2.5%, was introduced in 2010 by the coalition government as a method of ensuring that the state pension “kept up” with overall wage growth.

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