State pension triple lock could be axed with hikes linked to 'one factor' instead
The Triple Lock makes "no sense", state pensioners have been warned, and the system could be changed to a more simple system which would work better. State pensioners have been told hikes could be linked to just ONE factor going forward.
Kevin Hollister, founder of Guiide, said that the state pension is “unsustainable”. Mr Hollister explained: “It makes no economic sense and seems merely a political decision," and went on to put forward an alternative model for the Labour Party to introduce, as he said: “Increases would be much better to be linked to one factor, inflation plus real economic growth.
“That would mean workers and pensioners both benefit from economic growth, whilst protecting them from inflation.” He went on and added: “If real growth is negative the pension would reduce in real terms as it would be below inflation.
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“This is likely to mirror workers salaries, who are ultimately the ones paying for any state pension increases through taxation.” The triple lock was introduced by the Conservative-Liberal Democrat coalition Government in 2010. It guarantees that the state pension rises every April by whichever is highest out of: inflation (using the previous September rate of Consumer Prices Index inflation), wages (average growth between May and July), or 2.5%.
It comes weeks after Kemi Badenoch has sparked fury by saying the Tories are looking at "means testing" the state pension triple lock. Labour seized on her comments, saying the Tories had "let the mask slip" and would leave pensioners worse off. A spokeswoman said: "Kemi Badenoch has put pensioners on notice - she's going to cut your state pension.
"The Labour Government has taken tough action to clean up the mess the Tories left our economy in, meaning we can guarantee a £470 cash boost for pensioners in April. The Tories have let the mask slip though and are happy to leave pensioners worse off. Yet again, the Conservatives haven't listened and they haven't learned."
Liberal Democrat Treasury spokeswoman Daisy Cooper said: “Bungling Badenoch has finally come up with her first new policy, slashing the state pension. The Conservatives urgently need to clarify what she meant and how many pensioners would lose out."