"The triple lock guarantees that the basic and new state pensions will rise every April by whichever is highest: inflation, average wage growth or 2.5%. Saying change was unavoidable as Britain's steadily ageing population drove up the cost of the policy, the thinktank suggested a pre-election pact should be made between the main political parties to ensure the triple lock did not continue past the next general election."
"As the Middle East conflict triggers yet more inflation and pushes up government borrowing costs, Rachel Reeves has said difficult choices will be needed to fund energy support for households and an increase in defence spending."
"Inflation is expected to rise sharply this year amid soaring global energy prices, heaping pressure on households already struggling with a cost of living crisis. Higher headline inflation will also force the government into higher annual pensions and benefits increases next year."
The Tony Blair Institute recommends scrapping the pensions triple lock to alleviate financial strain on the government. The policy, which guarantees pension increases based on inflation, wage growth, or 2.5%, has become increasingly costly due to an ageing population and recent inflation shocks. The thinktank suggests a political agreement to end the triple lock after the next general election. Despite rising inflation and government borrowing costs, the chancellor remains committed to the policy, citing manifesto promises. Urgent reforms to the pensions system are deemed necessary to address these challenges.
Read at www.theguardian.com
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