In what may yet prove a more significant move than his cuts to national insurance, the chancellor, Jeremy Hunt, has said the Conservatives will retain the triple lock system to determine annual rises in the state pension if they win the election. Hunt says the pledge will appear in the next Conservative manifesto. The decision raises some interesting questions...
What’s the triple lock again?
It’s a commitment to increase the level of the state pension applicable to any given individual by either the rate of inflation (as measured by the consumer prices index); the rate at which wages are going up; or 2.5 per cent, whichever is the greater. It has been policy, with one temporary suspension, since 2010, when the idea – which the Liberal Democrats came up with – was incorporated into the policies of the coalition government and the Conservatives adopted it as their own.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
