DWP could axe Triple Lock and £920 increase for new 'Double Lock' system
The Department for Work and Pensions (DWP) could scrap the Triple Lock for a so-called Double Lock, it has been claimed. The ‘triple lock’ means that the state pension goes up each year by either 2.5 per cent, inflation, or earnings growth – whichever is the highest.
Someone receiving the full ‘new State Pension’ is expected to see an increase of £460.2 per year to their state pension between financial years 2024/25 and 2025/26. For singles, this is an increase of £460.2 and for couples an increase of £920.4.
Someone receiving the full ‘Basic State Pension’ is expected to see an increase of £353.6 per year to their state pension between financial years 2024/25 and 2025/26. For singles, this is an increase of £353.6 and for couples an increase of £707.2.
READ MORE NS&I urges customers to fill out crucial document or risk losing Premium Bonds
Speaking to the I, former pensioners minister Sir Steve Webb, who served under the Liberal Democrats and Conservative Party coalition government, said: “The circumstances of 2010 were pretty unique in terms of being the first full coalition government since the War. There was some scepticism that the Coalition would last five years, let alone that policies implemented in 2010 would last for decades
“In any case, the triple lock is a policy which effectively has to be renewed each parliament – as no parliament can bind its successors." Baroness Ros Altman said: “It could also be that the Government makes a charge to buy added years, but this should be on more commercial terms than the current system, which is an excellent deal for those buying the years, but not good value in most cases for taxpayers.
“I think that the triple lock no longer makes sense and that either the state pension should be increased in line with a double lock of best of earnings and prices, or could be left to the discretion of the Government of the day each year.”
Committing to the triple lock pension will ensure an increase in pensions that will “outstrip” any loss from the Winter Fuel Payments, said Keir Starmer during Prime Minister’s Questions (PMQs). The prime minister said during PMQs on 11 September that “we can make sure that, through the triple lock, increases in pensions will outstrip any loss of payment”, later adding: “we can commit ourselves to the triple lock, and that means that the state pension will increase by more than any loss of the Winter Fuel Payment.”