State pension triple lock: Rishi Sunak warns of ‘difficult decisions’ | Personal Finance | Finance

Speaking in the House of Commons today, the Prime Minister answered questions from MPs over whether benefit payments will be raised in line with inflation. The SNP’s Westminster leader Ian Blackford MP queried whether the triple lock will continue to be in place for state pensions, which has been promised by Mr Sunak’s predecessors. The Prime Minister outlined that “difficult decisions” will need to be made regarding any further payment rises next year.

Earlier today, Mr Blackford asked the Prime Minister: “Will he keep his promise and lift benefits and pensions in line with inflation?”

In response, Mr Sunak said: “We do have an excellent new Chancellor, and I’m looking forward to his Autumn statement in a couple of weeks.

“It wouldn’t be right to comment on individual policy measures before then but I think everyone knows we do face a challenging economic outlook and difficult decisions will need to be made.

“What I would say is that we will always, as my track record demonstrates, have fairness and compassion at the heart of everything.”

READ MORE: 70 health conditions qualify for extra £156 a week in PIP from DWP

The triple lock is a promise to raise state pension payments every year by either 2.5 percent, average earnings or in line with inflation.

Whichever is the highest figure will be used as the metric to increase payments, which means pensioners are guaranteed a steady rise annually.

Due to average earnings being artificially inflated during the pandemic as a result of the furlough scheme, the triple lock was temporarily suspended.

However, both former Prime Ministers Boris Johnson and Liz Truss pledged to reinstate the triple lock on state pension payments next year.

DON’T MISS

Despite this, Rishi Sunak has appeared more hesitant to reintroduce the triple lock for the time being.

With the Bank of England due to raise interest rates this week, experts believe the Government is wanting a better perspective on the economy before making a decision.

Interest rates are being increased primarily due to the UK’s inflation rate returning to a 40-year high.

As it stands, inflation is at 10.1 percent and is expected to remain high for the foreseeable future.

READ MORE: Paramedic shares how she dishes up tasty meals costing 68p per portion

Pete Hykin, the co-founder of Penfold, explained: “The continued uncertainty around the triple lock is creating even more anxiety for savers in what has been an extremely turbulent time for pensions.

“As ever, we are relying on the government to create favourable conditions for UK savers and the current state of chaos at Westminster is further undermining the reputation of pensions as a reliable means of preparing for life after work.

“We need a definitive answer on the triple lock as soon as possible so savers can make informed decisions about how much they need to be saving to afford the lifestyle they’re aiming for when they stop working.

“And, with all the uncertainty around the state pension, it’s important savers explore other avenues for shoring up their retirement savings including consolidating old pension pots from previous employers and saving into a personal pension.”