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Triple lock

(185 Posts)
morethan2 Wed 26-Apr-17 13:50:32

I'm not sure if this should be on the political forum or not. I have just recently retired I just wondered what will happen if we loose the triple lock on our pensions. I'm not that sure what a triple lock is if I'm honest. I am hoping That someone will be able to enlighten me.

whitewave Wed 26-Apr-17 14:01:17

The triple lock was introduced in 2006, in order to ensure that year on year the state pension would at best keep up with inflation, and hopefully gradually reducing over it original value. The government at the time was concerned at the poverty amongst the retired population.

So it means that the state pension will rise by wage inflation, the price index or 2.5% which ever is greatest

May will take this away during the next Parliament. Which means that the state pension will once again be subject to the vagaries of the government.

The question you have to ask yourself is do you trust this or any government to ensure that the state pension does not slip back to poverty levels.

whitewave Wed 26-Apr-17 14:03:36

Oh I should have proof read - so the idea is for the pension to gradually recover its value.

Ana Wed 26-Apr-17 15:11:06

Theresa May has not said whether she will or will not 'take away' the triple lock on state pensions.

Do get your facts right, whitewave.

whitewave Wed 26-Apr-17 15:18:56

Would you care to bet on it ana? When asked directly she refused to reply. If she intended to keep it she would have answered in the affirmative as it is a vote catcher.

rosesarered Wed 26-Apr-17 15:18:58

We will have to wait and see, it may stay as it is until the next election.It is rather nice to have it, but we can't expect to keep it forever.All the political parties can't swear that they will keep it.

whitewave Wed 26-Apr-17 15:19:48

The last Tory government did rose

rosesarered Wed 26-Apr-17 15:22:18

That was the last one! T May is now PM, and here is an all new GE.

Ana Wed 26-Apr-17 15:25:55

No, I'm not betting - but neither am I saying categorically that 'T May will take this away during the next parliament' as you did. Do you have a crystal ball whitewave?

M0nica Wed 26-Apr-17 15:39:25

Our concern should be not whether the triple lock goes or not, but if it does, what will replace it.

I think the triple lock should go. Over the last 10 years the state pension has increased by over £1,700 a year while average wages have fallen by over £750. I, for one, am not comfortable that we were protected from the worst of the recession while everybody else, including our children, were seeing their incomes fall.

I think the pension should be tied to average wages and if average wages fall, so should state pensions. The Pension credit will ensure that in that situation poorest pensioners will not suffer.

rosesarered Wed 26-Apr-17 15:49:10

Yes, an easy vote winnner by Corbyn to say the triple lock will stay, and the triple lock is great but I agree with you Monica in the long run.

Welshwife Wed 26-Apr-17 15:53:23

Not sure who it was now but I heard one of the ministers saying it would be replaced by a 'double lock' but did not explain exactly what that was.
It is a difficult one this. Some people on the old basic pension are hardly getting a fortune at all - and when the basic pension goes up does the credit part go down a bit like the benefits do if people have a wage rise? Pensions were falling behind wages at a fast rate so these guaranteed rises have given pensioners a bit of a lift. However if we continue to get inflation and the pensions do not rise in line with it we shall be back to square one in a few years.

dbDB77 Wed 26-Apr-17 15:53:41

I'm glad Teresa May is not promising to keep the triple lock - any new Government needs flexibility to deal with whatever happens in the economy.
I agree with Monica - I think the triple lock is unfair - it's also arbitrary - why 2.5%?
I think we (those of us who are OAPs) should pay something for bus travel - not free everywhere - and the winter fuel allowance should be added to the state pension & therefore be taxable. Pension credit could ensure that the pensioners with the lowest income wouldn't be disadvantaged.

Beammeupscottie Wed 26-Apr-17 16:06:43

Tories get the pensioner vote (despite the efforts of a few on here) so they won't mess about with it too much, imo.

morethan2 Wed 26-Apr-17 16:09:28

Thanks for that whitewave I think I understand it now.
Can I ask another question? Would it be better if all basic state pensions were paid at the same rate so that there was no such thing as pensions credits, free bus passes and the winter fuel allowance. Wouldn't that be cheaper to implement as well as ensuring that all pensioners were paid a living pension or is that too simplistic?

Charleygirl Wed 26-Apr-17 16:16:15

The annual £10 distributed in December should be scrapped or added on to the fuel allowance because it must cost twice as much to pay everybody such a paltry amount.

GillT57 Wed 26-Apr-17 16:17:13

Too simplistic morethan2 and a bit unfair too. Many have chosen to pay SERPS or whatever the top up is/was called and for them to receive the same as others who have not is unfair. I do agree however that the winter fuel payment should be added to taxable income. Now that would be simple and very fair; those in need of it would pay little or no tax, those who dont really need it to keep warm will pay tax. I heard an interesting discussion today about funding for social care which is a burning issue and one of the interviewees said that the amount paid out in winter fuel allowance is comparable to the annual short fall in social care funding. Interesting statistic which I must research.

GillT57 Wed 26-Apr-17 16:18:59

As I approach retirement age ( although it does keep evading me), I note that all the benefits and perks are starting to disappear. I joke to my DS that by the time I can eventually retire I will be the fuel allowance ( grim joke) grin

angelab Wed 26-Apr-17 16:41:00

Know what you mean Gill - my most precious perk is my bus pass, dreading them taking that away from me sad

GillT57 Wed 26-Apr-17 16:52:53

I don't think I will ever get a bus pass.

durhamjen Wed 26-Apr-17 17:02:46

Interesting, GillT, about the winter fuel allowance.
However, there will be more care needed if it is taken away. Over 200 preventable elderly deaths a day, according to AgeUK because of not being able to heat our homes. Lots more elderly needing to go into care.
On the other hand, it could reduce the elderly population a lot quicker if it was taken away.

durhamjen Wed 26-Apr-17 17:07:14

Theresa May's mantra, strong and stable government....
Roses' mantra, wait and see....

durhamjen Wed 26-Apr-17 17:20:00

May had two chances at PMQs to say whether she would keep the triple lock. She ducked both. She is obviously not going to.

MPs have been given over a thousand pounds pay rise this year.

"I think the triple lock should go. Over the last 10 years the state pension has increased by over £1,700 a year while average wages have fallen by over £750. I, for one, am not comfortable that we were protected from the worst of the recession while everybody else, including our children, were seeing their incomes fall."

I think you have made a mistake there, Monica.
£1700 a year means it would be over £17000 now whatever base it started at ten years ago.
I wouldn't mind that,

Beammeupscottie Wed 26-Apr-17 17:36:08

TM will keep the triple lock because of the Pensioner vote. Very simple really. Why upset your big vote. It wouldn't make sense. You clobber those who will never vote for you, if good political sense.

Nandalot Wed 26-Apr-17 17:45:36

Cutting the winter fuel allowance and the free bus pass might save money on the bottom line but there will be hidden costs. As DurhamJ pointed out the fuel allowance might help prevent deaths . It might help those who have to choose between eating and heating to be able to keep reasonably well nourished. Similarly the bus pass encourages and facilitates pensioners to keep active and this must have health benefits both for mobility and general well-being. Yes, it might be paid to those who don't need it but it would be expensive to means test. Also those who are better off will probably only use the bus pass occasionally whilst it could provide a lifeline for those who really need it.