How should the triple lock be reformed?

How should the triple lock be reformed?

Many are calling on the state pension triple lock to be put on hold or reformed this year, but now is the chance for advisers to tell FTAdviser what they think.

Under current triple lock rules the state pension is increased by the highest of earnings growth, price inflation or 2.5 per cent a year. But there are mounting concerns wages growth could be artificially boosted this year as a direct effect of the government's furlough policy.

In fact, data published by the Office for National Statistics last month showed wages grew by 8.8 per cent in the latest quarter, as the UK emerged from coronavirus lockdowns.

Yesterday the chairman of the Treasury committee called for the suspension of the wages element of the triple lock, saying a potential double-digit percentage rise to the state pension was “unrealistic”.

Meanwhile a report in the Daily Mail suggested the chancellor is poised to suspend the pension triple lock for a year in favour of a 2.5 per cent increase.

Pressure has also increased on the government amid its plans to fund social care reform through increases to National Insurance contributions, which are not paid by those who have reached state pension age.

Now advisers can tell FTAdviser what they think by completing the short survey below.