The Conservative/Liberal Coalition set out the triple lock aimed at protecting the value of state pensions and in 2019 the Conservative Party Manifesto stated that for the duration of the present Parliament the triple lock would be maintained - although momentarily, during the pandemic, the triple lock was suspended and due to be restored in April 2023.
The pension is supposed to increase every year depending on which of the following items is highest:
1) inflation measured by the CPI (Consumer Prices Index) 2) average wage increase or 3) 2.5%
This was before the present economic environment in which inflation shot upwards and is now above 10%. The present goverment led by Rishi Sunak will have to make a fundamental decision in terms of keeping the triple lock at least until the next General Election or abandoning the triple lock.
In a country in which the average age of the population is rising, telling voters that the government is going to abandon the triple lock is not a vote winner. There are also plans to postpone the age of retirement. Chancellor of the Exchequer Jeremy Hunt will have to make a statement on plans for tax and spending. Britain has one of the lowest state pensions when compared to other Western countries. and given present rates of inflation the value of state pensions is being eroded on a daily basis.
If the triple lock is abandoned, the value of state pensions will purely and simply collapse.
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