UK state pension: what is the triple lock, and could it be ditched?

"The full new state pension looks likely to increase by almost 11 to 241 a week from next April equating to 12,534 a year as a result of the triple lock, the latest wage growth figures suggest. The inflation-busting 4.7% or 560-a-year rise will need to be confirmed by the government. It is likely to reignite debate about the affordability of the triple lock, and poses questions about the standard tax-free personal allowance, which stands at 12,570."

"The UK state pension increases in April each year based on a system known as the triple lock. Introduced in 2011 by the coalition government, it guarantees that the basic and new state pensions will rise by whichever of three figures is the highest: Inflation, based on the consumer price inflation (CPI) figure for September of the previous year The average increase in wages during the May to July period of the previous year"

A predicted 4.7% increase in wages points to the full new state pension rising to about £241 a week from next April, equivalent to £12,534 a year, subject to government confirmation. The projected rise would be worth around £560 a year and could intensify debate over the affordability of the triple lock. The standard tax-free personal allowance currently stands at £12,570, close to the projected annual pension. The UK state pension is uprated each April under the triple lock, which guarantees increases based on inflation, wage growth or the highest of specified measures. Approximately 13.1 million state pensioners receive payments, with 8.4 million on the old basic pension.

Read at www.theguardian.com