Chancellor Hints At Changes To Pensions 'Triple Lock'

Speaking to the BBC, Chancellor of the Exchequer Rishi Sunak hints that the pensions 'triple lock' -which sees the state pension increase by whichever is highest out of the rate of increase in average earnings, inflation measured by CPI, or 2.5% - could be amended due to the formula requiring an 8% increase in the state pension at present.

• The anomaly comes as a large number of workers who took a pay cut during the pandemic now receiving their full wages, resulting in a spike in average earnings.
• Many have said it would be unfair for the state pension to rise at such a fast rate when so many taxpayers lost their jobs during the course of the pandemic.
• There is no set defined definition of the average earnings metric to be used by the gov't, with a HoC briefing paper from Feb 2021 stating that "...legislation allows the Secretary of State for Work and Pensions to estimate the annual change in the "general level of earnings in such manner as he thinks fit"."
• Maintaining the triple lock was a Conservative manifesto promise before the 2019 general election, meaning the chancellor will have to make the case that any changes do not endanger this commitment.