At this rate, pensioners could see 8% pension increases next year if Triple Lock reinstated. Can Govt stick to its pledge? https://t.co/SkWkSMWxVE
— Josephine Cumbo (@JosephineCumbo) March 22, 2022
There had been some speculation that Dr Coffey , SOS for Work and Pensions, wouldn’t commit to keeping the triple lock in place to the end of this parliament. While it’s possible this parliament won’t make it to next April, I think that unlikely.
So this statement is welcome (as recorded in Hansard Vol 711 No 138 kindly donated me by Guy Opperman!
If we have 8% inflation next year, we will get an 8% increase in our state pension entitlement and that is locked in. That is very expensive indeed and Jo Cumbo knows it.
So the question for the Government is how do they keep inflation under control. It’s not a hard one to answer ; you increase interest rates which drives down consumer demand and makes pension schemes more affordable to run.
It also makes the lives of house owners with mortgages and businesses with loans , a lot tougher.
Whichever way you look at it, the next twelve months is going to be tough.
My hope is that the Chancellor prioritises pensioners, who have no alternative but to rely on the state and uses pension credits to provide extra money to the elderly most in need. This can fill the gap between 8% inflation and the 3% increase in the state pension ..the result of not honoring the triple lock this year.
It might also incentivise a few more people to claim pension credit, which would also be a good thing.