Arguing for the need for the triple lock to be retained, as it is used to calculate State pension in 2021, Chris Noon, Partner, Hymans Robertson says:

“As we’ve seen today, the triple lock increase of 2.5% has been used to increase State pension in 2021. This will inevitably give rise to political and fiscal pressures on the Government to reduce public spending following the unprecedented support provided to individuals and businesses with the furlough, and other schemes, during lockdown. With the additional support being offered now with the tier system, as we face a second wave of coronavirus there will be additional public spending required - however scrapping the triple lock would not be a wise short term fix. It is unlikely to provide suitable cost savings in the medium to long-term, removes an important safety net for pensioners and would risk a widening gap between incomes for working and pensioner households.

“It is more likely that, as consumer confidence eventually returns and we see employment rates begin to recover, inflation and salary increases will outstrip the 2.5% guaranteed by the triple lock in 2022 and possibly in the years beyond this. Therefore, keeping the triple lock is important as it will retain a valuable protection to low income pensioner households. If the Government is looking to restrict future State pension increases, a fairer approach may be to adjust the earnings increase criteria to account for increases over a longer period, which would align employment and pensioner income increases more closely.”