A survey of 2,000 UK adults by independent price comparison website NerdWallet found that more than a third said the triple lock suspension made them less trustful of Government pension policy. The Government has now said that it will honour the triple lock for the remainder of parliament.
In April 2022, the state pension will increase by 3.1% in line with the Consumer Price Index rate of inflation in September 2021, instead of the 8% increase that would have happened if the triple lock policy maintained the increase with average wage growth.
The temporary suspension of the earnings portion of the triple lock has undermined confidence in the Government’s pension policy and left many questioning whether more permanent changes could be on the cards. However, Thérèse Coffey, Secretary of State for Work and Pensions, has now said that the government will honour the triple lock for the rest of parliament. But will this be enough to restore the public’s trust in the Government’s pension policy?
When the triple lock suspension was announced in 2021, a NerdWallet survey found that 36% of Brits said they were less trustful of the government’s pension policy because of this decision. Mistrust of the government’s pension policy was not only high among over 65s (52%) but also among the UK’s youngest 18-24-year-old age group (42%).
Concern over the future of the triple lock was far from reserved to just the older generations. More than any other age group, young people were most worried about how changes to the triple lock would impact their future retirement income (45%). This concern may have stemmed from the significant number of 18-24 years olds (32%) that said they intend to rely on the state pension to fund their retirement.
Richard Eagling, Senior Pensions Expert at NerdWallet said: “The state pension triple lock is not just an issue for those in retirement, its future will have implications for the generations to follow. The news that the Government has pledged to honour the triple lock for the rest of this parliament will offer some reassurance. But the fact remains that the smaller increase to the state pension this year will do little to offset the cost of living crisis that many retirees face. An extra 200,000 people of pension age fell into relative poverty last year, and with this year’s state pension increase significantly lower than inflation, we can expect this situation to deteriorate further.”