Hunt caves to pressure and kicks triple lock reform can down the road

17 November 2022

If you are covering the news that the government is reinstating the triple lock, please see the following comment from Jon Greer, head of retirement policy at Quilter:

“Following weeks of mounting concern, pensioners across the country can breathe a sigh of relief as Chancellor Jeremy Hunt has finally put the rumours to rest and confirmed that the government will honour its manifesto promise of keeping the triple lock in place for the 2023-24 tax year.

“Pensioners suffered a miserly 3.1% increase in the State Pension in April 2022 after the triple lock was scrapped last year following an anomalous rise in earnings and have increasingly struggled to make ends meet as inflation continued to rise and their purchasing power was diminished. The triple lock commitment will see the full new state pension – for those reaching state pension age from 6 April 2016 – rise to £203.85 per week, or £10,600.20 per year as a result of the 10.1% inflation figure seen in September.

“Committing to the triple lock will be extremely costly to the Treasury, but given soaring inflation, the alternative would have been too politically damaging. Inflation has already increased by a further 1% to 11.1% since the triple lock inflation linked increase was set in September, so the government had to act to prevent more pensioners from slipping into poverty as everyday costs soar.

“While the government has confirmed the triple lock has been reinstated for now, there is still a chance we could come across the same issue next year. The Bank of England has predicted inflation may drop to 7.9% by Q3 next year, so keeping the triple lock in place may prove less expensive from 2024. However, given the turbulence in government decision making we have seen in recent times, we know there are no real guarantees that the triple lock will go untouched for a second year.

“Reinstating the triple lock this year was ultimately the right move and it will go a long way towards supporting pensioners through these challenging times. However, the triple lock does not work for everyone, and perhaps it is time the government assessed whether there is a fairer way to raise the state pension going forward, while preventing more people slipping into the poverty net and having to choose between heating or eating.” 

Weekly figures rounded to the nearest 5p.