UK. Pensions triple lock at risk from Covid-19 fallout
Rishi Sunak is preparing to break the Conservative party’s “triple lock” state pension pledge, amid Treasury fears that the policy could soon become unaffordable because of the fallout from the coronavirus crisis.
The UK chancellor’s willingness to break a 2019 Tory manifesto commitment is a sign of how the Covid-19 pandemic is forcing the government to confront political taboos. Mr Sunak has been warned that unless he breaks the pledge next year, the value of the state pension could rise sharply.
The triple lock ensures the state pension goes up by whichever is higher — wages, inflation or 2.5 per cent. The Treasury has noted with alarm official forecasts that wages could soar in 2021 as they rebound from an artificial dip caused by the government’s job retention scheme. Some 9m people currently receive only 80 per cent of their wages under the furlough scheme.
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