From ThisIsMoney.co.uk: The Tories will axe the ‘triple lock’ guarantee from 2020, meaning older people could eventually get smaller annual state pension rises if Theresa May wins the election.
The Conservative Party would switch to ‘double lock’ increases in three years’ time, so the state pension would no longer rise by a minimum of 2.5 per cent each year, but by whichever is the highest of inflation or annual earnings growth.
Labour and the Liberal Democrats have promised to keep the triple lock for the whole of the next parliament. But the newly-released Conservative manifesto says: ‘We will keep our promise to maintain the Triple Lock until 2020, and when it expires we will introduce a new Double Lock.
[Read full article on ThisIsMoney.co.uk…]
From The Observer: Plans to ditch the triple lock on the basic state pension would represent a “double whammy” for the poorest pensioners, many of whom have already lost out under this month’s new flat-rate pension, according to a leading pension expert.
Pensioners who rely on the state pension for most of their income will be the biggest losers should the Tories drop the element of the triple lock that guarantees annual rises of at least 2.5%.
Chris Noon, a partner at leading pensions consultancy Hymans Robertson, said linking increases to earnings growth or inflation would, over time, erode the value of the pension and push larger numbers of people into poverty on reaching retirement age. He said: “The low paid were the community most negatively affected by the significant changes to the state pension introduced from April 2016. Removing the 2.5% minimum increase … is a double whammy that would again impact this community hardest over the medium to long term.”
The flat-rate state pension, worth £159.55 a week, combines the basic state pension with pension credit and the state second pension, which previously rewarded low-paid workers with generous top-up payments. Estimates put the savings at £8bn by the end of the parliament. Ending the triple lock would come on top of this cut.
[Read full article on Guardian website…]