The future of the triple lock has been under scrutiny as the cost of the policy continues to soar.
The future of the triple lock has been under scrutiny (Image: SKY NEWS)
Rachel Reeves has ruled out scrapping the triple lock in this Parliament, in a win for state pensioners. Addressing the Treasury Committee this morning, the Chancellor confirmed the policy will remain in place until at least 2030.
Under the “triple lock” guarantee, the state pension rises each April in line with the highest of three measures: average earnings growth between May and July, CPI inflation in September, or 2.5%. However, high inflation over the past few years has pushed annual increases up by a larger percentage than usual. The Office for Budget Responsibility’s (OBR) fiscal risks and sustainability report, published in the summer, estimated the annual cost of maintaining the triple lock could reach £15.5billion by 2030, three times higher than the OBR’s original estimate.
State pension triple lock update as Rachel Reeves makes huge statement (Image: Getty)
The figures have brought the policy under scrutiny, with many arguing that the triple lock is an unsustainable basis for state pension increases.
However, when questioned by Dame Harriett Baldwin, a member of the Treasury Committee, on Wednesday about whether the triple lock would remain, Ms Reeves responded: “Yes.”
The state pension is set to rise by 4.8% next April in line with the figure for wage growth, as this was the highest of the three triple lock metrics this year. The uplift will see the full new state pension rise to £241.30 per week, or £12,547.60 per year, representing an increase of almost £575 per year.
The full basic rate will rise to £184.90 per week, or £9,614.80 per year, providing an extra £439.40 per year.
Ms Reeves met with the Treasury Committee on Wednesday, December 5, to give evidence following last month’s Budget.
Members discussed the changes to the Treasury’s tax and spending plans, and potential implications for the economy, public services and Government debt.
