Former pensions minister Sir Steve Webb said that the the triple lock could be scrapped once the state pension reached a ‘reasonable’ share of average earnings – which he added was around one third
Mr Webb, who is now a partner at consultants LCP, said: “When we started in 2010, the pension had been linked more-or-less to prices for 30 years. This resulted in things like the notorious 75p a week pension rise in 2000, followed by £5 in the year of 2001.
“If you think about the purpose of a pension it is to preserve your standard of living when you no longer have a wage. If pensions are linked only to prices, and assuming wages generally rise faster, this would mean that the state pension falls steadily as a share of your pre-retirement income, and therefore becomes less and less adequate to do its job.”
The flat rate pension currently pays £203.85 per week, but average earnings for total pay sit at £651 per week, meaning the state pension would need to rise by around £13.15 per week to meet the requirement. However, the former Liberal Democrat MP said he does not expect the test to be met “any time soon”, adding that as inflation and earnings growth were unlikely to be below 2.5 per cent in the near future, the only way in which the pension would grow as a share of the average wage was if inflation exceeds earnings growth.
“It’s very hard to predict that, but it doesn’t seem likely we will see that over the next few years,” he added.
Belgique Dernières Nouvelles, Belgique Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
'Sir Alex would never' - Neville questions Guardiola's treatment of HaalandGary Neville claims Sir Alex Ferguson would ‘never’ have treated his players like Pep Guardiola did with Erling Haaland against Burnley. The reigning champions commenced their Premier L…
Lire la suite »
Sir Tony Blair's institute continued to receive Saudi Arabian money after murder of Jamal KhashoggiThe former prime minister's organisation is involved in a multimillion-pound partnership to help a modernisation drive led by the Gulf state's Crown Prince Mohammed bin Salman - who was accused of ordering the assassination of dissident Washington Post journalist Jamal Khashoggi in 2018.
Lire la suite »
Sir David Jason gives health update after being forced to cancel eventSir David Jason has been forced to pull out of an event and has issued a statement telling fans he needs surgery.
Lire la suite »