The Daily Telegraph

State pension triple-lock bill ‘unaffordab­le’

- By Jessica Beard

LIZ TRUSS will come under major pressure to abandon the state pension “triple lock”, experts have warned, as the policy has been branded unsustaina­bly expensive.

More than £13.5bn will be added to the Government’s pensions bill next year and taxpayers will have to shoulder an extra £24bn over the next two years as large back-to-back increases are expected. Ms Truss, the incoming prime minister, has pledged to stand by the mechanism, which ensures the state pension rises by the highest of inflation, earnings growth or 2.5pc each year.

The state pension is on track to breach the £200-a-week mark for the first time next April, with pensioners receiving a record boost as a result of runaway inflation. Consumer prices rose 10.1pc in the year to July and are expected to remain in the double digits in September – the month used in the pension calculatio­n.

Carl Emmerson, of research group the Institute of Fiscal Studies, said although there was a case for protecting pensioners in the short term, these large rises would make the triple lock too costly. He said: “The triple lock is expensive over the long-run and will need to be ditched at some point.”

The state pension has been increased by more than average earnings growth on eight occasions in the last 12 years.

This year, the Government broke the Conservati­ve Party’s manifesto policy, removing the earnings link and denying pensioners a bumper increase in an attempt to cut Treasury costs.

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