Former Pensions Minister Baroness Ros Altmann has demanded that the government scrap their commitment to the pensions 'triple lock'.
The triple lock is a mechanism that the government has committed itself too that guarantees pensions will go up the same as average earnings, inflation or a minimum of 2.5%. However, as good as this deal is for current pensioners, according to Baroness Altmann, it is simply unsustainable. This is because baby boomers being paid state pensions will rise by nearly 10% during the course of the next parliament.
This near 10% rise in pensioners was highlighted in a new report by the Office of Budget Responsibility that also revealed the ageing population in the UK will cost £30 billion every decade over the next 50 years thanks to social care, pensions and NHS costs. The state pensions age will rise to 67 by 2020 but this isn't enough according to Baroness Altmann who demands action needs to be taken quickly:
This increase in state pension age has pushed a huge extra cost into the next Parliament. "The triple lock is being applied when the number of new pensioners is lower than what it will be. It's a bit of a trick. It has fooled a lot of pensioners who think, 'Well, of course the government thinks about pensioners, they've done this triple-lock. ' But it's not all it's cracked up to be. It's a con trick. I would advise not having the triple lock beyond 2020. We need much fairer increases across the board. "
However, this doesn't seem likely following a government spokesperson's statement on the issue:
"We are increasing the incomes of millions of pensioners by meeting our pledge on the triple lock this parliament."