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Reinstating triple lock inflationary?

(52 Posts)
Nannina Tue 21-Jun-22 23:26:35

Journalists, including seem to be questioning reinstatement of the pension triple lock. The potential 10% increase to pensions in April 2023 is being compared to the call for public sector workers to exercise pay restraint to curb inflation. In fairness the government are, for the moment, sticking to their pledge but is this an attempt to pit workers against pensioners and an argument for a government u turn?

Whitewavemark2 Wed 22-Jun-22 07:43:39

The inflation we are currently experiencing is as a result of a number of factors, but NONE as a result of wage spiral ad the government seems to be trying to suggest.

We have inflation as a result of

Oil price increase

Supply chain difficulties

The world opening up from covid and demand is exceeding demand

Food shortages due to war in Ukraine

This wretched government has done nothing to plan for or mitigate the effects of the inflation, except to try and blame ordinary people.

Casdon Wed 22-Jun-22 07:49:42

It’s part of the government’s plan to set groups in the country against each other so that we aren’t focussed on what they are doing themselves. It’s the Murdoch press that are reporting the triple lock being reinstated in this way- enough said.

Dickens Wed 22-Jun-22 08:08:30

Casdon

It’s part of the government’s plan to set groups in the country against each other so that we aren’t focussed on what they are doing themselves. It’s the Murdoch press that are reporting the triple lock being reinstated in this way- enough said.

Yes.

Divide et dominare works now better than it has ever done.

Whitewavemark2 Wed 22-Jun-22 08:17:22

It should not have been taken away this year, and was a mean thing to do.

The triple lock is there to defend poor pensioners, who we can see from some threads on this site are doing sterling work managing on a relatively low income, but there is a limit and inflation at such a high level will break many backs if the triple lock isn’t reintroduced to maintain the income level of so many people.

Neilspurgeon0 Wed 22-Jun-22 08:21:56

I have just realised I have inadvertently started another thread on this very subject. Can threads be joined together ?

Whitewavemark2 Wed 22-Jun-22 08:26:00

Neilspurgeon0

I have just realised I have inadvertently started another thread on this very subject. Can threads be joined together ?

No, unfortunately, but you can asked for it to be zapped if you like.

Whitewavemark2 Wed 22-Jun-22 08:27:32

Good post from neilspurgeon

THE Telegraph headline is “Pensions to rise by 10% as workers told to accept a pay cut” which is accurate, but provocative. However, the article then goes on to claim that this, plus a benefits rise, will cost taxpayers 20%. As explained the other day there is NO direct correlation between Government tax income and Government expenditure so, once again, we are being attacked by “lies, damn lies and statistics”.

Why do we not just tell it like the RMT chap did yesterday and say, loud and clear to our Government, broadly speaking you are all liars?

Franbern Wed 22-Jun-22 08:39:43

Is my memory playing false? I seem to remember a speech from our PM about post-pandemic UK becoming a High Wage Society.

Does not seem to square with wage increases being far below current rate of inflation

From that speech then the PM and his Front bench Ministers should be joining a RMT picket line to support those workers and trades union supporting what the government asked for.

vegansrock Wed 22-Jun-22 08:56:08

Yes higher wages were supposed to be a benefit of Brexit.

GrannyGravy13 Wed 22-Jun-22 09:01:49

vegansrock

Yes higher wages were supposed to be a benefit of Brexit.

These things take time, we have been in various forms of lockdown for two years as has the rest of the world.

There is also the war in Ukraine, and the boycotting of goods and energy from Russia.

Jackiest Wed 22-Jun-22 09:05:40

But he did not say whose wages. We just assumed he meant everuones.

growstuff Wed 22-Jun-22 09:06:24

I'm afraid I don't understand the logic behind the claim that higher wages will be a benefit of Brexit, notwithstanding Covid or Ukraine. Meanwhile, millions of people aren't earning enough for a basic standard of living.

Jackiest Wed 22-Jun-22 09:06:39

everuones = everyone's

Whitewavemark2 Wed 22-Jun-22 09:09:49

Pensioners can’t withdraw their labour, but they can withdraw their vote.

We are not powerless.

growstuff Wed 22-Jun-22 09:10:59

Is my memory playing false? I seem to remember a speech from our PM about post-pandemic UK becoming a High Wage Society.

No, your memory is not playing you false. It was nonsense. In any society, somebody has to do the lower paid work. The only solution is to have a high minimum wage, which then pushes up wages for people in more highly skilled work - otherwise there wouldn't be an incentive to do them.

GrannyGravy13 Wed 22-Jun-22 09:12:09

Whitewavemark2

Pensioners can’t withdraw their labour, but they can withdraw their vote.

We are not powerless.

Exactly Whitewavemark2 perhaps our current cohort of MPs will wake up and realise they are in their jobs curtesy of the electorate and it’s about time they looked/listened to them(us).

CaravanSerai Wed 22-Jun-22 09:51:20

Anyone would think there’s an election around the corner and that more people of state pension age vote Tory than any other demographic.

A ten percent increase for someone receiving the full state pension would mean an extra £18 a week which by April 2023 is unlikely to have covered the rising cost of food and fuel. A comparison of state pension alone shows the UK provides a lower level of pension than most other advanced economies relative to average earnings.

Now that nasty piece of work Lynton Crosby is running the country, expect a lot more issues presented as wedges to divide the population.

People are looking to protect their jobs and earn a decent wage that keeps up with the cost of living.

The privatisation of our national rail system, just like all privatisations, puts a disproportionate share of profits into the hands of shareholders. The TUC reported in 2019 that rail companies had paid out over £1 billion in dividends to shareholders in the preceding six years.

And look at this damning report from the RMT about train leasing companies which paid out nearly £1 billion in dividends during the pandemic.

This is looting on a Putinesque scale.

www.rmt.org.uk/news/publications/rmt-policy-briefing-rosco-profiteering061021/rmt-policy-briefing-rosco-profiteering-in-the-pandemic-061021.pdf

Its conclusion?

RMT believes that this broken model of train procurement needs to be finally swept away. The public should buy and own our trains directly, rather than paying extortionate rents to these three companies. As an immediate step the pandemic profiteering must be curbed. We are calling on the government to use its Comprehensive Spending Review to announce a windfall tax on profits of the Rolling Stock companies and use the proceeds to help fund a fare rebate for passengers and a fair pay deal for staff. £I billion pounds in profits is more than enough to pay for a decent pay rise for rail workers.

MaizieD Wed 22-Jun-22 09:57:43

^ In any society, somebody has to do the lower paid work. The only solution is to have a high minimum wage,^

I agree with you, growstuff. I've said much the same thing on another thread. But to prevent it becoming inflationary don't we also have to address 'the market' which expects to make ever increasing profits under the the guise of 'shareholder value', in other words ever increasing dividend returns, and will increase prices to achieve this?

The only solution is to have a high minimum wage, which then pushes up wages for people in more highly skilled work - otherwise there wouldn't be an incentive to do them.

Pay differentials! this really is back to the 70s, isn't it? grin

While everyone likes to feel that their expertise and responsibilities are financially rewarded do you think that higher wages is the only thing that motivates people in their chosen occupation?

MaizieD Wed 22-Jun-22 10:03:39

Pertinent to CaravanSerao's post I think.
I've been seeing this a lot in the last day or two

MaizieD Wed 22-Jun-22 10:04:25

Sorry, fat fingers, CaravanSerai's

luluaugust Wed 22-Jun-22 10:15:50

We were told at the time that the triple lock was only going for one year and that is apparently going to be right. I don't blame the railway staff as it must be infuriating to see their bosses awarding themselves huge increases but strikes always hurt the most vulnerable. I feel very sorry for the people who weren't able to get to work yesterday and therefore didn't get paid.

Whitewavemark2 Wed 22-Jun-22 10:20:04

luluaugust

We were told at the time that the triple lock was only going for one year and that is apparently going to be right. I don't blame the railway staff as it must be infuriating to see their bosses awarding themselves huge increases but strikes always hurt the most vulnerable. I feel very sorry for the people who weren't able to get to work yesterday and therefore didn't get paid.

The strike would not have gone ahead except the paymasters (the government) refuse to negotiate.

The government has always had it in its power to negotiate a settlement.

The strikes are a result of the governments political manoeuvring.

StarDreamer Wed 22-Jun-22 10:21:06

The thing is though that if State Pension goes up, not only does it benefit today's pensioners but also it benefits people who will become pensioners in the future as the pension they will get will include increases made now.

A thing though is that some occupational pensions are capped, in that annual increase is inflation or x% whichever is lower, some at 5%, some at 3%, some at whatever they are, so if State Pension goes up by 10% some people may find any ocupational pension(s) they have are only increased by far less, a loss that will probably never be recovered.

Lovetopaint037 Wed 22-Jun-22 10:30:07

Whitewavemark2 has nailed it once more. This no nothing government has distanced itself from any involvement in the rail strike talks but spends time talking about the trouble it is causing. While they are criticising and lying they hope we are being distracted from their failings. Then there is the story which appeared in the Times relating to Johnson attempting to fix Carrie up with a £100,000 per annum job before their affair was discovered by someone walking in on them in the middle of a compromising situation. The rail situation has come along at just the right time for Johnson as he is filmed talking the talk at the cabinet table.n