Scrapping pensions triple lock ‘unacceptable’, Brits say
Chancellor faces backlash over measures to ease coronavirus economic fallout
The rumours that chancellor of the exchequer Rishi Sunak is planning to scrap the triple lock for pensions has caused discontent among people in the UK, as it was one of the promises made by the Conservative party during the electoral campaign in 2019.
The triple lock sets out that the UK state pension increases every year according to average earnings, inflation or 2.5%, whichever is highest.
According to research by investment platform AJ Bell, nearly a third of the population (30%) believes it to be "unacceptable" that the government wouldn't stay true to one of its manifesto pledges.
The survey showed a generational split, with those aged 55+ being twice as likely to disagree with the Treasury's plans than people aged 18-34.
Calculations by AJ Bell revealed that the triple lock would increase the state pension by 21.3% within the next two years – 2.5% in 2021 and 18.3% in 2022 – costing the government £41.2bn ($51bn, €45.5bn).
Upratings based on average earnings would total £18.7bn, but if the increase is linked to inflation the sum would amount to £6.8bn.
Going with the latter option could save the UK government £34.4bn.
David White, managing director at QB Partners, told International Adviser: "With coronavirus support costing the government billions of pounds, and having a massive impact on the wider economy, it is no surprise that the chancellor is looking at all ways to cut costs and to protect the government against further cost impacts.
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