Sunak under pressure on triple lock decision – calls to ‘reconsider’ at Spring Statement

Sunak under pressure on triple lock decision – calls to ‘reconsider’ at Spring Statement

The Chancellor Rishi Sunak is set to make his Spring Statement next week, and speculation is rife as to what will be announced. The controversial decision to suspend the state pension triple lock is still at the forefront of many people’s minds.

The subsequent 3.1 percent increase reflects the rate of inflation as of September last year.

But since the lower increase was confirmed, inflation has risen higher and higher, up to a 30-year high of 5.5 percent.

This means inflation is currently outpacing the state pension increase pensioners are set to receive. They are therefore still losing money in real terms.

Maike Currie, Investment Director for Personal Investing at Fidelity International, discussed the issue of the state pension triple lock as the Spring Statement approaches.

She said: “Last year’s suspension of the triple lock was by no means a long-term solution.

“As this was a statistical anomaly, it was removed from the triple lock, making it a ‘double lock’.

“However, inflation is moving towards the same level, leading to some calling for a rise based on last year’s average wages to be reconsidered.”

Ms Currie also outlined some other pension related issues which could be brought up in the Statement.

She said: “Pensions tax relief – where you automatically receive tax back on your pension depending on how much you earn – may also come up in next week’s Statement.”

Ms Currie added that there tends to be speculation around this topic at regular intervals.

She concluded: “Any short-term adjustments could prove confusing and unwelcome.

“A better solution would be for the Government to review the UK’s workplace, state, and personal savings as a whole, considering how they could work better together in the future.”

Published at Fri, 18 Mar 2022 12:34:48 +0000