Rishi Sunak warned against ‘double-crossing’ us over the state pension triple lock.
Chancellor George Osborne has been told that abandoning the triple lock would be a betrayal of retirees. Lord Foulkes, a champion of the elderly, called Rishi Sunak’s decision to forego a promised raise of roughly 8.8% a “double cross.”
Sam Lister and Harvey Jones contributed additional reporting.
“It would be breaking another manifesto pledge, as well as putting British retirees further down the European league,” he said.
“British public pensions are already among the lowest in Europe, and those who rely on them are struggling to make ends meet.
“It would be a double cross to abandon the triple lock.”
According to industry estimates, the average older couple will have spent their annual state pension by today, August 31, nicknamed “State Pension Shortfall Day.”
This Friday, September 3 is the date for single retirees.
The triple lock ensures that state pensions are increased by at least the September inflation rate, wage growth, or a minimum floor of 2.5 percent.
However, Mr Sunak has stated that the 8.8% pay increase predicted as a result of staff returning to work following the pandemic will be halted because he wants to be “fair” to taxpayers.
An increase of 8.8% would result in a weekly gain of £15 for those on the new state pension and more than £10 for those on the old.
However, it would cost the Treasury more than £3 billion in addition to the £2.5 billion it has budgeted.
The new basic state pension is worth £9,339 for a single person and £18,678 for a couple who retire from April 6, 2016.
However, according to estimates from retirement expert Just Group, the average single pensioner spends £13,842 each year, leaving them with a £4,503 gap. The average pair spends £28,064 and needs to come up with an additional £9,386.
Even if the Chancellor increased the state pension by more than 8%, the average single retiree would face a £3,500 yearly shortfall, with couples facing a nearly £8,000 shortfall.
“Most of the people asking for the elimination of the triple lock appear to be comfortably off, with no concept how hard it is to be a retiree on a low fixed income,” Caroline Abrahams, Age UK’s charity director, said.
“We’ve heard firsthand from elderly folks how scary and disheartening it is to be reliant on a state pension and possibly a little private pension.”Brinkwire Summary News”.