State pension triple lock could be 'suspended' as soon as next week

State pension triple lock could be ‘suspended’ as soon as next week amid fears a Covid distortion to wages could add billions of pounds to public spending

• It was claimed state pension triple lock may be ‘suspended’ as soon as next week
• The measure assures the state pension will rise in line with inflation or earnings
• Covid distortions to wages could mean OAPs see payments rise by 8% from April
• But the Chancellor previously hinted that he would not go ahead with an 8% rise

The state pension triple lock could be ‘suspended’ as soon as next week, it was claimed yesterday.

The measure guarantees the state pension will rise in line with inflation, earnings or 2.5 per cent, whichever is higher.

But distortions to wages caused by the coronavirus crisis could mean that pensioners see their payments rise by as much as 8 per cent from April next year.

The state pension triple lock could be ‘suspended’ as soon as next week, which would guarantee the state pension will rise in line with inflation, earnings or 2.5% (stock image)

The Chancellor has previously hinted that he would not go ahead with an 8 per cent rise, saying his decision would be guided by ‘fairness both to pensioners and for taxpayers’.

The Mail revealed last month Rishi Sunak was set to temporarily axe the triple lock due to the billions it could add to public spending. It is thought it is likely to be suspended for at least a year. 

Yesterday, Bloomberg reported that Mr Sunak could make an announcement as soon as next week, though Treasury sources dismissed the suggestion.

Another source familiar with the plans said they did not expect Mr Sunak would grant an 8 per cent rise.

Distortions to wages caused by Covid could see pensioners’ payments rise by as much as 8% from April. But Rishi Sunak (pictured) has hinted that he would not go ahead with an 8% rise

Helen Morrissey, a pensions analyst at Hargreaves Lansdown, said: ‘An early decision would be welcomed as bringing clarity for everyone. 

‘The current situation, though extreme, shows the importance of reviewing the triple lock.

‘It has improved the incomes of pensioners, but we need to look at whether the triple lock remains the best way to maintain the long-term value of the state pension while striking a balance between taxpayers and pensioners.’

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