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The FT's @GeorgeWParker and @ChrisGiles_ reporting today that the Chancellor is preparing to break the pensions triple lock.
Back in April, the SMF's @ScottCorfe called for an end to the triple lock altogether - https://www.smf.co.uk/publications/intergenerational-fairness-coronavirus/
Thread below
1/6
Back in April, the SMF's @ScottCorfe called for an end to the triple lock altogether - https://www.smf.co.uk/publications/intergenerational-fairness-coronavirus/
Thread below
1/6
Introduced in 2011 under the Coalition, the triple lock ensures the state pension rises by either inflation, wage growth or 2.5% - whichever is highest.
For 2018/19, the @OBR_UK forecasts that spending on the state pension will reach £96.6bn (2/6)
For 2018/19, the @OBR_UK forecasts that spending on the state pension will reach £96.6bn (2/6)
Prior to the 2019 General Election, the SMF’s @PetrieKathryn argued that triple lock was both unaffordable and unfair 
https://bit.ly/3ebemZc
Both the Cridland Review and the Lords Committee on Intergenerational Fairness have said the same. (3/6)
https://bit.ly/3ebemZc Both the Cridland Review and the Lords Committee on Intergenerational Fairness have said the same. (3/6)
In April @ScottCorfe proposed a double lock – ending the 2.5% commitment – which could save the Treasury £20bn per year.
It would also balance the cost of the crisis more fairly between generations, unlike during the last decade of austerity.
https://www.smf.co.uk/publications/intergenerational-fairness-coronavirus/
(4/6)
It would also balance the cost of the crisis more fairly between generations, unlike during the last decade of austerity.
https://www.smf.co.uk/publications/intergenerational-fairness-coronavirus/
(4/6)
Latest forecasts strengthen the case for action on the triple lock: @OBR_UK is forecasting an artificial 18% spike in wage earnings in 2021 meaning the state pension bill would grow astronomically in 2022.
Suspending/ending the triple lock is now a serious consideration (5/6)
Suspending/ending the triple lock is now a serious consideration (5/6)
Today, @ScottCorfe said:
“The triple lock has to go. Hiking the State Pension by a high (and distorted) earnings growth figure would further entrench intergenerational inequality in the UK, at a time when working age households are set to be hit by mass unemployment." (6/6)
“The triple lock has to go. Hiking the State Pension by a high (and distorted) earnings growth figure would further entrench intergenerational inequality in the UK, at a time when working age households are set to be hit by mass unemployment." (6/6)
