State pension UK: Triple lock under threat as ‘Treasury considers reform’ due to COVID-19

State pension UK: Triple lock under threat as ‘Treasury considers reform’ due to COVID-19

“According to ONS data, by mid 2043, 15.9 million people in the UK will be of pensionable age.

“There is also a question of fairness, as the triple lock suggests pensioners’ income is growing faster than the rest of the population and spending on state pension has increased by more than other benefits.

“But we need to also recognise the UK state pension is not particularly generous compared to other nations.

“Any changes to the triple lock need to be well thought out and preferably have cross-party support so we have a sustainable long-term policy and people are clear how the state pension remains the bedrock of their retirement income.”

He added: “The decision in the 1980s to only link the state pension to inflation was seen by many as an attack on pensioners and it would be a dramatic change.

“A move to a double lock of inflation or earnings growth would mean state pensions wouldn’t fall behind the cost of living or increases in average earnings, and would mean pensioners income should rise in line with the rest of the economy.

“However the savings for Government in moving to a double-lock are more modest compared to a more fundamental change.”

Published at Wed, 13 May 2020 10:20:00 +0000