UK. ‘Triple lock’ is unsustainable, says new Pensions Secretary David Gauke
The pension triple lock is no longer a sustainable policy, the new Work and Pensions Secretary has insisted.
David Gauke said the mechanism would remain until 2020, but would then be “reflected” on.
The Conservative manifesto pledged to abandon the triple lock on state pensions rises, which sees the state pension rise in line with either wages, inflation or earnings – whichever is highest.
However, the flagship pledge was not mentioned in the Queen Speech after the Prime Minister failed to secure a majority in the Commons.
The policy was toxic for the Conservatives during the election and widely interpreted as a potential tax raid on core Conservative voters.
Speaking at a lunch with journalists in Westminster, Mr Gauke said: “If you look at what the triple lock does, it has a ratchet effect because pensions go up by the higher of inflation or earnings, and in some years it will be one, in some years it will be the other.
Full Content: Telegraph
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