State pension triple lock future in doubt as ‘tax cuts bandied about’ | Personal Finance | Finance
The triple lock sees the state pension rise each year by whichever is the highest of: 2.5 percent, inflation or average earnings. The measure was temporarily ditched in favour of a double lock this year, as earnings data was warped due to the pandemic.
It meant a 3.1 percent increase for pensioners this year, many of whom were upset as original data had predicted an eight percent rise.
With the temporary change, many have questioned whether the triple lock could be pulled away again, and indeed whether the policy has longevity.
Andrew Tully, technical director at Canada Life, spoke exclusively to Express.co.uk about the triple lock.
The expert acknowledged that funding projections suggest the state pension is sustainable “for now, at least”.
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As the expert highlighted, pensioners are set for a potential windfall next year as payments are expected to jump based on inflation.
It could see the full new state pension climb to around £10,783 if inflation hit 12 percent in September.
Whether the triple lock is sustainable in the long-term future remains to be seen.
A number of factors will inevitably come into play as it relates to the increasing of the state pension.
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The triple lock and its future will be a huge decision for the next Prime Minister to take on.
While the sum is primed for a substantial increase, it will be somewhat dependent on the decision of whoever becomes the next leader of the Conservative party.
Reports have suggested Liz Truss, candidate for the Tory leadership, has said she will uphold the triple lock commitment.
Rishi Sunak, her contender, defended a reinstatement of the policy while he was still Chancellor.
