State pension: A ‘temporary fix’ could reduce triple lock rises in the face of recession

State pension: A ‘temporary fix’ could reduce triple lock rises in the face of recession

“The government should use this opportunity to carefully consider the merits of moving to a long-term solution, such as a smoothed earnings link, so that pensioners share in the proceeds of economic growth, whilst protecting their income against inflation and ensuring intergenerational fairness.”

Triple lock rules are often debated as they can prove to be expensive for the government and there are often reports it may be scrapped entirely.

Under the most recent increase, state pension rose by 3.9 percent, one of the largest rises in some time.

With the additional costs associated with the government’s support measures such as the Coronavirus Job Retention scheme, questions may once again pop up on the appropriateness and affordability of the triple lock.

Published at Thu, 13 Aug 2020 08:56:40 +0000