Rishi Sunak is planning to scrap triple lock as soon as next week, so get ready.
The triple lock on state pensions might be lifted as soon as next week, under bold measures that could affect millions of Britons across the country.
The triple lock on the State Pension has been contested for a long time, especially in the aftermath of the coronavirus crisis, which cost the government billions of pounds. However, a source close to the situation claims that a decision on the triple lock will be made soon. The state pension is increased each year by the greater of three essential factors: average earnings growth, 2.5 percent inflation, or inflation.
However, due to skewed wage statistics this year, it was expected that the state pension would climb by up to 8%, which would be astronomical when compared to prior rises.
This has raised concerns about whether an increase in the state pension would be affordable, with some organisations also raising concerns about intergenerational fairness, particularly in light of the current economic situation.
This has clearly put Chancellor Rishi Sunak in a quandary about whether the process should be kept in place (a Conservative Party manifesto pledge) or scrapped owing to the pandemic’s unique conditions.
According to Bloomberg, the Chancellor has reached a choice and will reveal it as soon as September 7, which is only a few days away.
Mr Sunak is anticipated to suspend the triple lock for the coming year, replacing it with a “double lock” scheme that excludes earnings.
Some experts and think tanks had proposed this proposal in the past, claiming that the policy would still aid retirees while mitigating more large rises.
When asked about the topic in July, Mr Sunak told the BBC’s Charlie Stayt that a decision will be taken later in the year.
“What I would say is that the numbers you cited are guesswork at this stage, and judgments will be made later,” he remarked at the time. Concerns are valid and appropriate to express.
“When we come back to this at the right moment, your term, fairness, is the right one. That will be the driving force behind all we do.
“We want to make sure that the decisions we make are equitable for both retirees and taxpayers.”
Many retirees, especially those who are financially reliant, understandably value the triple lock coverage. “Brinkwire News in Condensed Form.”