Axe ‘triple-lock’ pension deal, say MPs

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The triple-lock deal, under which pensioners in the UK receive guaranteed rises, should be scrapped, according to an influential committee of MPs.

Pensions rise by a minimum of 2.5 per cent, the level of average earnings or the rate of inflation, according to which index is the higher.

But the so-called triple-lock arrangement, which has been in place since 2010, is unfair on younger families, according to the Work and Pensions Committee.

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Instead pensions should be linked to average earnings with a deal put in place to ensure they could not fall too far behind in times of inflation.

Committee chair, Labour MP Frank Field said: “It is time for the triple-lock to be shelved.”

His committee’s report points to the cost of pensions in the last tax, £98bn, as being unsustainable. 

But in a statement by the Department for Work and Pensions, the government said it was “committed to the triple-lock, which is protecting the incomes of millions of pensioners.”

 

6 COMMENTS

  1. I think the system of payments should remains as it is now. Remember millions of pensioners worked through the years when they had to pay 15% on mortgages with salaries which were considerably lower than people earn now. The young working people today have it easy by comparison to the struggles the current pensionsers indured. They paid in for what they should receive today in my opinion.

  2. As a pensioner who worked for 48 years, paying into the system the whole time, I paid tax on my earnings, I pay tax on my pension. Double taxation on the same contribution. But hey ho, let’s penalise pensioners who lived through previous recessions and when interest rates on mortgages rose to 15% who struggled to raise their children onwages way below inflation rate. The state also had the use of my contribution for 48 years. It seems the less people contribute the more they are”entitled” to. No incentive to work, to contribute to the system just encouragement to take from it. Thousands and thousands of scroungers who won’t work, don’t work, but pensioners must help pay for them. You know what you can do with yoursuggestion Frank Field….stick it with all your other useless suggestions…..where the sun don’t shine.

  3. Well said Meryl. I never had housing benefits and all the other things that the younger generation seem to think is theirs to collect. Who do they think paid in the money that they recieve now. Already taken our winter payment away even though we could do with it.

  4. [quote]As a pensioner who worked for 48 years, paying into the system the whole time, I paid tax on my earnings, I pay tax on my pension. Double taxation on the same contribution. But hey ho, let’s penalise pensioners who lived through previous recessions and when interest rates on mortgages rose to 15% who struggled to raise their children onwages way below inflation rate. The state also had the use of my contribution for 48 years. It seems the less people contribute the more they are”entitled” to. No incentive to work, to contribute to the system just encouragement to take from it. Thousands and thousands of scroungers who won’t work, don’t work, but pensioners must help pay for them. You know what you can do with yoursuggestion Frank Field….stick ifolks on beneft with all your other useless suggestions…..where the sun don’t shine.[/quote]
    I worked and paid tax and NI, never claimed anything.Today I read that the benefits are being capped at £20,000 per year. If a pensioner received that much money they’d pay tax on it, but folks on benefits get this tax free. We should be taking action against this. Well done for everyone who speaks up.

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