‘Real concern’ for pensioners banking on triple lock



“Real concern” will be caused to pensioners who are banking on getting a pension increase in line with inflation, after uncertainties were raised over the pensions triple lock, an expert has said.

As the Government looks to cut spending, Treasury minister Chris Philp did not confirm whether benefits will be hiked in line with spiralling inflation.

He told ITV’s Robert Peston that the matter is under consideration.

The triple lock, which is used to uprate the state pension, was previously suspended for a year.

Under the guarantee, state pensions are uprated by whichever is highest of 2.5%, wages and inflation.



These comments will cause real concern among pensioners who were banking on getting an inflationary increase

Helen Morrissey, Hargreaves Lansdown

Inflation is expected to be by far the highest factor this year, potentially putting pensioners in line for an increase of 10% or more.

Last year, the triple lock was suspended, with pensioners receiving a 3.1% increase.

Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, said: “These comments will cause real concern among pensioners who were banking on getting an inflationary increase to their state pension next year under the triple lock.

“Many pensioners have been left struggling with their finances as the cost of energy and food has soared and their incomes have been unable to keep up.

“The triple lock was suspended last year as wage data was deemed to have been skewed by the pandemic furlough scheme and pensioners were instead given a 3.1% increase which aligned with CPI (Consumer Prices Index) inflation at the time.

“However, it has since soared, and many pensioners were banking on a big increase from next April to help them manage.”

Ms Morrissey added: “Last week’s mini-budget didn’t really target pensioners and the prospect they could lose out on a decent increase to state pensions while higher earners pay less tax will not go down well.”



The Government must stick to its promise to increase benefits in line with inflation, and provide much more direct financial support now to disabled people at the sharp end of this crisis

James Taylor, Scope

James Taylor, director of strategy at disability equality charity Scope, said: “Many disabled people have no choice but to rely on benefits for income.

“They’ve seen real-terms cut after cut, firstly because of a four-year benefits freeze, and then last year’s failure to increase in line with inflation.”

He added: “The Government must stick to its promise to increase benefits in line with inflation, and provide much more direct financial support now to disabled people at the sharp end of this crisis.”



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