State pension warning: Triple lock ‘no longer affordable’ amid Rishi Sunak spending plans | Personal Finance | Finance


The Triple Lock pension helps claimants get the most out of their pension with annual increases to the basic rate. In the most recent tax year, this sum rose by 3.9 percent, in line with average earnings across the UK. But former Chancellor Ken Clarke believes it is simply not affordable for the UK Government to keep the plans.

Speaking to Sky News, Mr Clarke said: “I would raise fuel taxes which are a green tax. Not excessively but that is one target that I would look at.

“I think you are going to have to introduce some taxes which hit the wealthier population which have almost been unaffected by this.

“It’s the poor and the young who are worse affected and I’m afraid that the rest of the population are going to have to accept that we’re going to have to carry some of the burden.

“Things like the triple lock on pensions. I think that is simply not going to be affordable for the next few years.

READ MORE: Pension warning: Furlough scheme hits pension contributions by 25%

“Let’s face it, the average pensioner, not all pensioners, is rather more prosperous than the average person of working age at the moment.”

Chancellor Rishi Sunka is said to be under pressure to review the pension scheme, according to the Daily Telegraph.

The report stated the officials told the Chancellor it is “better to break the tax lock to achieve revenue of this scale than attempt to raise this level of revenue with this constraint.”

However, the government has strenuously denied it has plans to scrap the Triple Lock.

Labour’s shadow culture minister Christian Matheson said pensioners will be “forced to choose between eating and watching TV” if free TV licences for the over-75s are scrapped.

During culture questions, he told the Commons: “The BBC is cutting jobs and content to pay for the cost of the licence dumped on them by the Government.

“And pensioners are forced to choose between eating and watching TV.”

Responding, culture minister Matt Warman said: “The fact is that the BBC has had a generous licence fee settlement and it is deeply disappointing that they have chosen to go down the path that they apparently are going down.

“I would of course hope that there is yet time to reconsider that because he is right to say that television has been vital comfort for many people in the last few months.”

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