State Pension Triple Lock: What Is It And Why Has It Been Suspended?

The government has suspended the Triple Lock policy used to set how much the state pension rises each year. This follows concerns it would have produced an unaffordable rise in the next year.

What Is The Triple Lock?

The triple lock was introduced by the Conservative/ Liberal Democrat coalition government in 2010. In its 2019 election manifesto, the Conservative party said it would keep the triple lock in place for the duration of this parliament. Men and women are entitled to the state pension at the age of 66, but it is scheduled to rise.

Why Has The Triple Lock Been Suspended?

The triple lock has been shelved for one year because the impact of the coronavirus crisis on wages could have led to an unaffordable rise. Instead, it is essentially becoming a “double lock”. Next year’s increase will either be 2.5 per cent or based on inflation whichever is higher -with wage increases taken out of the equation.

The Work and Pensions Secretary Therese Coffey told MPs there has been an irregular statistical spike in earnings” over the period during which the pension rate is set, due to the economy beginning to recover from the effects of 2020’s lockdown.