State pensioners warned triple lock may be revised as it’s ‘hard to sustain’
Analysis shows that the state pension could increase by £700 next spring under the state pension triple lock.
This means payments increase each year in line with the highest of 2.5 percent, the rate of inflation or the rise in average earnings.
However the state pension triple lock might have to come under review as young families struggle to cope with the cost of living crisis, a former Cabinet Minister has warned.
Each year, the government spends billions of pounds on the state pension, however experts argue this is unsustainable.
High levels of inflation last year meant state pensioners received a record 10.1 percent boost this April, and forecasts suggest payments could get a sizeable increase next year as well.
Bank of England forecasts suggest inflation will stay high and average seven percent in the third quarter of 2023.
The full new state pension could be more than £11,000 when the next increase is applied next April.
Lord John Hutton, who served as Work and Pensions Secretary under Tony Blair, argued that the current model is becoming increasingly hard to “sustain”.
Speaking to Camilla Tominey on GB News, Lord Hutton said: “I’ve said previously that the triple lock is going to be very, very hard to sustain.
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“And I think that we’ve got to strike a fairer balance between pensioners being well-supported in their old age, of course, because they have very limited opportunities to top up pensions with any earnings.
“But we’ve got to make sure that the welfare state is fair to young families with children too. It is a terrible thing that at the moment young families with children are the ones who are facing rising levels of poverty.
“So, this issue about the balance of spending in the welfare state has got to be addressed and we can’t sit back and ignore the needs of young families with children, it’s terrible to see them struggling.”
Rishi Sunak and his Cabinet colleagues are facing the difficult task of handing over another bumper pay rise for the second year in a row.
Analysis has indicated that state pension is on track to increase by £700 next spring.
The current full basic state pension is £156.20 a week, or £8,122.40 a year, while the full new state pension is £203.85 a week, or £10,600.20 a year.
If there was a seven percent increase, the full basic state pension would go up to £167.13 a week, or £8,690.76 a year.
The full new state pension would go up to £218.12 a week, or £11,342.24 a year, providing an annual increase of more than £700 a year.
A person can check how much state pension they are on track to receive using the state pension forecast tool on the Government website.
The Camilla Tominey Show airs on GB News at 9.30am every Sunday.
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