Triple lock pension pledge suspended for one year

The government has confirmed a one-year suspension of the “triple lock” formula for annual state pension increases.

The move follows government concern that a big post-pandemic rise in average earnings would have meant pensions increasing by 8%.

Work and Pensions Secretary Therese Coffey said the average earnings component would be disregarded in the 2022-23 financial year.

Instead, the rise will be the consumer inflation rate or 2.5%.

“Tomorrow, I will introduce a Social Security Uprating and Benefits Bill for 2022-23 only,” she told the Commons.

“It will ensure the basic and new state pensions increase by 2.5% or in line with inflation, which is expected to be the higher figure this year, and as happened last year, it will again set aside the earnings element for 2022-23 before being restored for the remainder of this Parliament.”

Ms Coffey said the figures had been “skewed and distorted” by the average earnings rise, which she described as a “statistical anomaly”.

She said the change meant that pensions would still rise, but less quickly. The triple lock would return the following year, she added.

Unusual change

Under the triple lock, pensions increase by inflation, the increase in earnings between May and July or 2.5%, whichever is the greater.

The Work and Pensions secretary said she was “anticipating an unusual change in earnings” due to the pandemic.

She added that earnings between May and July were expected to rise by more than 8%, so a one-year adjustment was needed.

Last month, the Bank of England said it was expecting inflation to peak at 4%.

The Conservatives promised in their 2019 election manifesto to maintain the triple lock formula.

Ms Coffey’s announcement came just hours after Prime Minister Boris Johnson breached another manifesto commitment by increasing National Insurance to fund health and social care.

Age UK charity director Caroline Abrahams said: “If suspending the triple lock for a single year helps get a government deal on social care over the line, then I believe it’s a price worth paying, but only if it really is just a one-off measure and not a sneaky way for ministers to ditch the triple lock altogether.”

Ms Abrahams said that with more than two million pensioners currently living in poverty, there was “a strong case” for keeping the triple lock untouched.

She added that it was “imperative that the triple lock reverts to normal next year, to help all those pensioners on low and modest incomes who desperately need it”.

Like this article? Share on

Facebook
Linkdin
Twitter
Telegram
WhatsApp

Related articles

Information about our own complaints process, raising concerns to the Legal Ombudsman and to us

We want to give you the best possible service. However, if at any point you become unhappy or concerned about the service we provided then you should inform us immediately, so that we can do our best to resolve the problem.

In the first instance it may be helpful to contact the person who is working on your case to discuss your concerns and we will do our best to resolve any issues at this stage. If you would like to make a formal complaint, then you can read our full complaints procedure here. Making a complaint will not affect how we handle your case.

The Solicitors Regulation Authority can help you if you are concerned about our behaviour. This could be for things like dishonesty, taking or losing your money or treating you unfairly because of your age, a disability or other characteristic. 

You can raise your concerns with the Solicitors Regulation Authority.

What do to if we cannot resolve your complaint

The Legal Ombudsman can help you if we are unable to resolve your complaint ourselves. They will look at your complaint independently and it will not affect how we handle your case.

Before accepting a complaint for investigation, the Legal Ombudsman will check that you have tried to resolve your complaint with us first. If you have, then you must take your complaint to the Legal Ombudsman:

  • Within six months of receiving our final response to your complaint; and,
  • Within one year of the date of the act or omission about which you are concerned; or
  • Within one year of you realising that there was a concern.

 

If you would like more information about the Legal Ombudsman, you can contact them at the following details:

 Contact details

This website uses cookies to ensure you get the best experience on our website. By closing this message, you consent to our cookies on this device in accordance with our cookie policy unless you have disabled them.