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MPs pile pressure on Govt to scrap state pension triple-lock

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A committee of MPs has said it will continue to press for the state pension triple-lock to be scrapped after the Government failed to agree to its recommendation.

As part of an inquiry into inter-generational fairness, The Work and Pensions Committee published a report in November calling on the Government to ditch the triple-lock –  which has uprated the state pension by the highest of inflation, earnings or 2.5 per cent every year since 2012 – with an earnings linked system based on average full time earnings individuals reach in 2020.

Responding to the report today, the Government restated its position that it is “committed to the triple lock for the length of the Parliament” but did not provide any further direction on future policy.

The Government noted that spending on pensioners was forecast to fall from 6.1 per cent of GDP in 2010 to 5.6 per cent in 2020, and that the triple-lock has provided “invaluable” support for pensioners living in low income households.

It also pointed to progress made on auto-enrolment and the new single-rate state pension to improve income for lower earners and women.

Work and Pensions Committee chair Frank Field said his group of MPs would keen pressing for an overhaul of the “unsustainable” triple-lock.

Field said: “We will continue to press for cross-party consensus on the replacement of the triple lock after 2020. The Government is right to say pensioner benefit spending has dipped slightly as a share of GDP, as accelerated increases in the state pension age have kicked in, but official projections show that, without reform, it will rise relentlessly from that point. The triple lock has been valuable but it is unsustainable.

“The Committee has recommended an alternative which would maintain pensioners’ living standards and protect them from the effects of inflation.”

OBR triple lockThe Office for Budget Responsibility’s triple-lock forecasts

Aegon pensions director said that with the Committee repeating its call for an end to the triple-lock, “it looks like its days are well and truly numbered”.

Cameron says: “The government and policy makers need to consider the long term consequences of any changes as while many of today’s retirees are benefitting from generous defined benefit pensions, future generations of pensioners will not be so fortunate.”

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Comments

There are 14 comments at the moment, we would love to hear your opinion too.

  1. Doesn’t sound like these MPs are representing the masses….but then they’ve got their gold-plated public sector pensions to look forward to….paid for by the rest of us!!

    • Spot on Andy. It is so good of the MPs to consider the cost to the ‘hard working’ voters. Will any of them stand up and say why their pensions should be gold plated?

    • Right you are Andy they have managed to RING FENCE there pensions by ten years they forget that they are PUBLIC SERVANTS and the VOTE is such a strong TOOL is used RIGHT

  2. When we have the lowest state pensions in the G20 bar Mexico this is electoral suicide. As few pensioners can save if reliant of the state pension for income pensioner spending circulates through the economy supporting jobs business and GDP. There are other areas to tackle like limiting pension tax relief to the basic rate.

    • sorry, but i cannot afford my rent and my wages have stagnated while you have a gauranteed rise in income yearly, many young people want to see this scrapped, and guess what, pensioners are a dying breed. Politicians are going after the young vote now. Kiss goodbye to your triple lock and remember we’re all in this together.

  3. All working age support has been cut, state pension is all that’s left. A race to the bottom of a murky pit by economic illiterates.

  4. State pension is so low…I personally could not survive on it and I still.think it a scandal that widiw/er pension scrapped and if a spouse dies before drawing pension it disappears into the ether…and with increased pension age this will happen more and more

  5. I would just like my pension!! But it has been stolen off me by the government, and m.ps who voted,and changed the law regarding the statuary pension age, but forgot to tell me!!
    They obviously didn’t think it was important.

  6. Can we have the names of the MPs on this committee please?

  7. So MP’s are happy to say that we cannot afford the Triple Lock for pensioners that have paid their taxes and NI all of their lives but are completely comfortable that the Country CAN afford their DB scheme pensions along with the ones for the Civil Service, Local Councils, Teachers, NHS.
    Typical political hypocrites

  8. All of those commenting so far have put the position as I see it and the Frozen pensioner gets nothing even though they have paid on a par with all other pensioners who get their indexation.
    Unfair just does’nt cut it as these are the real losers forettin the Waspi ladies whose situation is different but not discriminative.
    2.000 pensioners returned to the UK last year, some no doubt because of the uncertainty of Brexit but some because they cannot support themselves due to the freezing without help from family and do not wish to be dependent on them.
    The DWP will say that everyone knows the rules that are on the internet today forgetting that some have been abroad before there was one plus the fact , which they have now admitted, that they did not publish leaflets for 11 years during which many emigrated only to find out when the retired that they would get no indexation.
    You are right about their gold plated pensions which seem to increase every other year by a fairly generous amount which is perfectly affordable it seems ?

  9. Maybe they should factor in the saving made by removing SERPS/S2P etc.

  10. I agree – stupid idea in the first place. There is more need to encourage people to make some independent provision against their State Pension too – and that is happening slowly with Auto Enrollment as well. No guaranteed increases would be about right for now – it can always be reviewed over the years.

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