When discussing the triple lock for state pensions, it is crucial to acknowledge the comparison made by the House of Commons library, which states that the UK provides a lower pension level in relation to average earnings compared to other advanced economies. This deficit is partially offset for individuals with private pension income. As a result, approximately 2.1 million pensioners in the UK live in poverty. Despite its political motivations, the triple lock has had the positive economic impact of gradually improving the well-being of the poorest pensioners. However, this progress has been reversed since 2022, as highlighted by The Guardian. While pensioners solely relying on state pensions have seen some improvement relative to average incomes, they continue to remain among the poorest members of society. Additionally, their real inflation rate, driven by food and energy costs, is significantly higher than the increases they receive.
Likewise, those with private pensions, typically invested in the bond market, have experienced income loss due to declining investment values. Therefore, it is unfair to single out pensioners as a group that has solely benefited while the general population has suffered. Despite its political motives, the triple lock primarily serves as a modest safety net for the poorest pensioners.
Increasing basic state pensions, which are comparatively low in comparison to other countries, is undoubtedly necessary. The triple lock serves as one way to achieve this. However, concurrently, the government is resisting cost-of-living increases for public sector and related workers.
On the other hand, individuals like myself, who have sufficient occupational pensions, do not require increases based on all three criteria. It would be fairer to recover these increases, especially for those paying higher-rate tax, through the tax system.
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