Chancellor Rishi Sunak hints at ruling out 8% pension rise

Goldwing1

https://www.bbc.co.uk/news/business-57762787 refers.

If I've got this right, pension increases have been suppressed for a number of years due to the "triple lock" and using the lower CPI rather than the more realistic RPI measure. Now it looks like pensioners might get a "decent" increase, he's going to back out?

Thrugelmir

A potentially disportionate rise as a result of unforeseen circumstances when the triple lock was drafted. 

mark55man

I think suppressed is the wrong word - the triple lock is meant to provide a support so there is always a non-miserly increase and was designed to catch up from when the pension fell behind earnings

but yes it looks like Rishi is discussing ruling it out on the grounds that everyone except pensioners suffered a decrease in wages during the pandemic (as the 2.5% element of the triple lock kicked in) so the argument will be that the artificial 8% increase of wages returning things to normal post pandemic (if that's what we are) should not leave the pensioners 10.5% better off over two years when the rest of the workforce is effectively net even

now I think that the UK pension is low, but equally the UK pensioner gets quite a lot for free that some of the other countries have to pay for.    

aardvaak

Pensioners have suffered a decrease in income during the pandemic and deserve the increase they can not work and have no other means of support

hugheskevi

Out of idle curiosity, I charted what the Basic State Pension would have been had it increased in line with various indices since 2000.

Prior to 2000, it was increased by RPI for a long time (from the early 1980s), with only a slightly larger increase in a single year (an extra 50p to compensate for VAT being added to fuel).

QrizB

aardvaak said:

Pensioners have suffered a decrease in income during the pandemic ...

[citation required]

Pensioners, by definition, obtain their income from pensions. Exactly which pensions have decreased during the pandemic?

Marcon

aardvaak said:

Pensioners have suffered a decrease in income during the pandemic and deserve the increase they can not work and have no other means of support

Really? That's a pretty sweeping generalisation and is far from true in many cases. Certainly doesn't fit with the Bank of England's findings that 'higher income families and retirees are more likely to have increased their savings during COVID : https://www.bankofengland.co.uk/bank-overground/2020/how-has-covid-affected-household-savings

There are plenty of fit and active pensioners who choose not to work and won't thank you for writing them off as unable to do so!

Why do pensioners 'deserve' the increase more than say a young family struggling to pay their bills and put food on the table?

dunstonh

aardvaak said:

Pensioners have suffered a decrease in income during the pandemic and deserve the increase they can not work and have no other means of support

That is highly unlikely as 
1) state pension has continued to rise each year
2) occupational pensions have continued to rise each year
3) annuities have continued to pay the agreed terms
4) investment back drawdown has seen values rise over the period allowing continued income.

What income have you had that has fallen?

Goldwing1

Pensions have risen more slowly since the introduction of CPI and the "triple lock" compared to the old RPI measure. The following is an extract from the National Pensioners Convention dated 2010. 

Forecast	2010-11	2011-12	2012-13	2013-14	2014-15
CPI (%)	2.8	2.6	1.9	2.0	2.0
RPI (%)	4.2	3.4	3.0	3.2	3.4
Source: OBR Here are the actuals until I gave up recording them; RPI CPI 4.60% 3.10% 5.60% 5.20% 2.60% 2.20% 3.20% 2.70% 2.30% 1.20%

Thrugelmir

CPI is considered a more accurate reflection of inflation. 

Goldwing1

Thrugelmir said:

CPI is considered a more accurate reflection of inflation. 

That's the political line. For those people who rely on just the state pension, can they survive of just around £775 per month, assuming they receive the maximum state pension?

Looking back through the replies, who is actually retired?