Time to defend the pension triple-lock…again

The triple lock on the basic state pension is guaranteed until 2020, but there is no doubt that the likes of Ros Altmann and others will be using their influence between now and then to alter things in the future. That means that the triple lock could become a vote winner or loser depending on which party is prepared to commit to keeping it. The Department for Work and Pensions has also released figures showing that the basic state pension would have actually been £1.15 a week higher in 2015 if the government had not changed the rules on annual increases. Up to 2010, the basic state pension had risen in line with the higher of the Retail Price Index (RPI) or 2.5%. In June of that year, the Chancellor announced that the RPI would be replaced by the lower Consumer Price Index (CPI). The result meant that the basic state pension would have been higher for four years of the Parliament under the old rules, rather than using the triple lock. By April 2015 it would have been £117.10 a week rather than £115.95 – £58.90 a year more. The total loss to someone receiving the full basic state pension over the five years of the triple lock has therefore been £163.80. The triple lock is not therefore the problem. The problem is our basic state pension remains one of the worst in the developed world.

Ros Altmann clearly doesn’t know what she’s talking about.

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