Government suspends triple lock formula amid ‘distorted’ earnings growth figures

Article summary

The Department for Work and Pensions has announced that the ‘triple lock’ formula for annual state pension increases has been suspended for a year. Speaking in Parliament, Secretary of State for Work and Pensions Thérèse Coffey said that the government will introduce the Social Security (Up-rating of Benefits) Bill, which will have the effect of increasing the basic and new State Pensions increase either by 2.5% or in line with inflation, whichever is the higher figure, and set aside the earnings element for the 2022–23 year. This is in response to the increase in earnings which came about as a result of the lifting of restrictions imposed due to the coronavirus (COVID-19) pandemic, and the return to the labour market of millions of workers who had previously been furloughed. The government has introduced this one-year suspension notwithstanding the fact that its 2019 election manifesto included a pledge to maintain the triple lock...