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Mel Stride comments on the pensions triple lock

19 June 2020

Rt Hon. Mel Stride MP, Chair of the Treasury Committee, comments on the pensions triple lock:

Chair's comments

"The pensions triple lock will produce unintended consequences in its current form. This is largely due to the fact that in 2021 there will be a very significant increase in average wages relative to the level this year, which will have been depressed by millions of workers on furlough.

Inflation is also significantly lower than anticipated prior to the crisis, which will take some pressure off living costs.

The Chancellor will need to address the lock by carefully balancing the importance of protecting the income of older people, who often have limited opportunities for increasing their earnings, against the impact on the public finances.

A way forward might be to temporarily suspend the wages element of the lock. This might not entirely conform to the Conservative Party manifesto, but I think most people would recognise that a potential double-digit percentage increase is unrealistic."

Further information

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