Furlough effect leaves Rishi Sunak with 'triple lock' pensions dilemma
State pensioners will receive 18% increase if chancellor does not scrap manifesto promise
Rishi Sunak is being forced to consider ways of getting round the triple lock" on pensions next year amid signs that the bounce back in wages for furloughed workers could put state pensioners in line for an 18% increase.
While the Treasury said it had no plans to ditch the arrangement - by which pensions rise by the rate of inflation, average earnings or 2.5%, whichever is greater - the chancellor has accepted a problem is looming in 2021 as the economy recovers from the coronavirus lockdown.
Introduced in 2011 by the coalition government, the triple lock guarantees that the basic state pension will rise by a minimum of either 2.5%, the rate of inflation or average earnings growth, whichever is largest.
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