- This topic has 4 replies, 3 voices, and was last updated 6 years ago by
.
- Topic
The coalition government policy that led to state pensions rising quicker than wages should be scrapped as part of an “intergenerational reciprocation” for the costs of battling Covid-19, a think tank has said.
The Social Market Foundation (SMF) proposes that the massive economic cost of the emergency measures deployed to manage the pandemic must be shared fairly between old and young, and that some of the huge anticipated government deficit could be funded by abandoning the so-called triple lock guarantee on state pension rises.
Scott Corfe, the SMF’s research director said: “Quite rightly, society is making sacrifices to protect its elderly right now. There is a clear case for intergenerational reciprocation when it comes to meeting the fiscal costs of the crisis in the years ahead.
“The crisis has emphasised our obligations to other generations, even in the face of personal sacrifice. This spirit must be maintained when the dust settles – with the economic costs of responding to the crisis shared fairly across the generations.”
The triple lock, which was introduced in 2011 by the coalition government, guarantees the basic state pension will rise by a minimum of either 2.5%, the rate of inflation or average earnings growth, whichever is largest.
Before 2011, the state pension rose in line with the retail prices index measure of inflation, which was consistently lower than annual rises in earnings.
https://www.theguardian.com/business/2020/apr/14/scrap-triple-lock-uk-pensions-coronavirus-crisis
Really!
Joss
Current car: BMW X2 sDrive 20i M Sport 5dr Step Auto In metallic Portimão Blue. 04:10:2025
Previous car:Peugeot 308 GT Premium 1.2 Pure tech Petrol.
- Replies
I’m going to suggest that the triple lock should remain in place until the state pension is high enough for retired people to live off without have to claim state benefits. It’s not there yet.
I would concur with your statement Wigwam.
Joss
Current car: BMW X2 sDrive 20i M Sport 5dr Step Auto In metallic Portimão Blue. 04:10:2025
Previous car:Peugeot 308 GT Premium 1.2 Pure tech Petrol.
If the percentages of age / death are to be believed there will be a lot less pensioners around to claim pensions or have expensive care. therefore the pension could be raised as the older generation took more of the hit from the virus
One thing to note is the Billions the government has had from various pension pots over the years.
In the form of so called “surpluses” One example is the Mine worker Pension scheme.
Currently, the UK government takes 50% of a surplus from the scheme as part of a guarantee that pensions would continue to be paid after the coal industry was privatised in 1994. The UK government said pensions were approximately 30% larger than they would have been otherwise, and that the UK Treasury had received more than £3bn in return for the guarantee.
It is estimated that the figure is closer to 8 Billion.
That’s a vast amount of money
Joss
Current car: BMW X2 sDrive 20i M Sport 5dr Step Auto In metallic Portimão Blue. 04:10:2025
Previous car:Peugeot 308 GT Premium 1.2 Pure tech Petrol.
- You must be logged in to reply to this topic.