A petition has been launched calling for the government to honour the triple lock in full in April 2024.
The Conservative party's manifesto promised to keep the triple lock, which increases state pension by the highest of inflation, wage growth or 2.5 per cent.
Headline wage growth was 8.5 per cent in May to July 2023, but the petition said there is speculation that the government might use a lower figure.
“The full increase should apply,” the petition stated. “The government has already reneged on its manifesto when it legislated to increase state pensions by less than the triple lock in April 2022.
“The triple lock does not mean that pensioners' total incomes are increasing in real terms. It only applies to state pensions.”
Many workplace pension increases are capped at 2.5 or 5 per cent.
The petition said annuities and pension protection fund compensation are frozen for many and the triple lock helps keep pensioners' total incomes from falling too far below inflation.
A spokesperson from the Department for Work and Pensions said: “The government is committed to the triple lock.
“As is the usual process, the secretary of state will conduct his statutory annual review of benefits and state pensions using the most recent data available.”
At the time of publication, the petition had 18,075 signatures.
If the petition reaches 10,000 signatures, the government will respond and if it gathers 100,000 before its deadline, it will be considered for debate in parliament.
It was recently reported that the government’s commitment to the pensions triple lock could cost the Treasury £8bn, according to analysis from LCP partner, Steve Webb.
Data published by the Office for National Statistics last month (October 17), estimated that the growth in average earnings in the year to July was 8.5 per cent.
This means the chancellor will have to increase the new state pension and the basic state pension by 8.5 per cent if he is to stick to his manifesto pledge.
As a result, the new state pension will rise by £17.35 per week or £902.20 per year, while the old ‘basic’ state pension will rise by £13.30 per week or £691.60 per year.
Recent analysis from the Institute for Fiscal Studies (IFS) also revealed that the triple lock could potentially increase spending by anywhere between a further £5bn and £45bn per year, in today’s terms, by 2050.
IFS said the triple lock generates considerable uncertainty for individuals regarding the state pension they might receive in the future.
There is also significant uncertainty in the future cost of providing the state pension.
sonia.rach@ft.com
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