Jeremy Hunt has confirmed that if the Conservatives win the upcoming election, they will retain the triple lock system for determining increases in the state pension.
This system ensures that the pension rises in line with either average earnings growth, inflation, or 2.5%, whichever is highest.
The chancellor emphasized the importance of the triple lock in reducing pensioner poverty since the policy was introduced in 2010. He acknowledged that continuing the triple lock would be costly but expressed confidence that economic growth would fund it.
Labour has also indicated its commitment to retaining the triple lock, although it has not confirmed whether this pledge will be included in its election manifesto.
Critics have labeled the Conservative pledge as a “shameless election trick,” while others have expressed concerns about the sustainability of the triple lock due to its costs. However, the pledge has garnered support from pensioners, a significant demographic for the Conservative party.
The state pension is set to rise by 8.5% in April, marking the second significant increase in two years. The triple lock is designed to ensure that pensioners can keep pace with rising prices and wage increases in the working population.
Despite falling inflation rates, the cost-of-living crisis persists, with interest rates remaining high. The Bank of England has indicated potential rate cuts in the near future to alleviate financial pressure on households.
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Jeremy Hunt confirms triple lock for pensions to be in Tory manifesto