Pensions  

Altmann commits to pensions triple lock until 2020

Altmann commits to pensions triple lock until 2020

A triple lock protecting the value of the state pension will remain until at least 2020, the pensions minister has said, despite its implications on the rising cost to younger generations.

The work and pensions select committee met Ros Altmann and two other Department for Work and Pensions representatives on 27 April to discuss state pension policy, with MPs grilling her over the “intergenerational contract” between those receiving and those paying for pensions.

Baroness Altmann tackled perceived income imbalances between those in work and in retirement, saying the government was trying to get pensioners back to a level that does not leave them in poverty.

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“It isn’t appropriate to think pensioners incomes should not be protected”, she said.

Baroness Altmann also tackled the “myth” all pensioners are well off, suggesting this was accurate probably only for the top 20 per cent.

MPs questioned the level of welfare spending dedicated to maintaining the triple lock guarantee - which sees payments guaranteed to increase in line with whichever is the highest of earnings, inflation or 2.5 per cent.

The pension minister admitted the proportion spent would increase in-line with the increasing pensioner population.