Triple Lock Becomes Double Lock For 1 Year

hugheskevi

MK62 said:

That said, in real terms the state pension has risen faster than either CPI or earnings (or even RPI)......and that's down to the triple lock.

In April 2010 (Triple lock introduced 2010), the Basic State Pension was £97.65. In April 2021 it's £137.60.

Just for historical perspective, under Labour between 2000 and 2010 (ie pre-Triple Lock) the State Pension also increased significantly above inflation.

The pension in those years was uprated by RPI rather than CPI as the statutory basis, and Labour had a policy (not legislation) of increasing by a minimum of 2.5% to avoid another 75p uprating issue. There were also several quite significant ad hoc increases awarded.

The overall effect of that was to quite significantly escalate the value of State Pension from 2000 onwards, preserving its value relative to earnings during a period of strong earnings growth.

MK62

hugheskevi said:

MK62 said:

That said, in real terms the state pension has risen faster than either CPI or earnings (or even RPI)......and that's down to the triple lock.

In April 2010 (Triple lock introduced 2010), the Basic State Pension was £97.65. In April 2021 it's £137.60.

Just for historical perspective, under Labour between 2000 and 2010 (ie pre-Triple Lock) the State Pension also increased significantly above inflation.

The pension in those years was uprated by RPI rather than CPI as the statutory basis, and Labour had a policy (not legislation) of increasing by a minimum of 2.5% to avoid another 75p uprating issue. There were also several quite significant ad hoc increases awarded.

The overall effect of that was to quite significantly escalate the value of State Pension from 2000 onwards, preserving its value relative to earnings during a period of strong earnings growth.

That was a Party Political Broadcast on behalf of the Labour Party........

lauran1902

So many commenting on here who are clearly not pensioners on a fixed and small income.  The point is that you don't get to legislate something and then just decide on the day that you don't want to honour that law.

Very few pensioners are 'wealthy'.  At least I don't know any.    

In any case, we have one of the lowest state pensions in the world.  The fact that some previous uplifts have been more 'generous' than expected doesn't compensate for that fact.  My pension is £8700 per year.  That's all.  I have a very small occupational pension of about the same amount.  Would any one of you who are working like to try and live on that, especially with rising prices all round?

Btw Therese Coffey should be informed that pensioners are also subject to the 'personal allowance threshold' which hasn't increased for us either.

Just to add balance, I am not in favour of the NI increase on jobs either.  It's disingenuous to think that this is going to solve the 'social care problem'.  Most people will still have to sell their houses.  It's just smoke and mirrors.  And I think it's perfectly reasonable that my home (my only asset) should be used to fund my care in later life if it is needed.    

[Deleted User]

1. UK does not have “one of the lowest state pensions in the world”. There are around 200 countries and most of them have much lower state pensions. Even among developed countries there are plenty with lower state pensions, eg Canada.  It is low compared to EU countries or US.  Various countries rely on different mixes of public and private pension provisions. UK’s private pension system is exceptionally  generous. 

2. Laws do change and the Parliament has a right to do that.  “Triple lock” was a politically shrewd but highly misleading piece  of legislation.  If it were to be implemented in perpetuity, sooner or later state pension would exceed average salaries.  Also, bad things happen and budgets don’t always go up. 

3. A pensioner living on a fixed state pension income will be as well of next year as last year. He won’t get a huge pay rise though. 

zagfles

lauran1902 said:

So many commenting on here who are clearly not pensioners on a fixed and small income.  The point is that you don't get to legislate something and then just decide on the day that you don't want to honour that law.

 What? They are honouring the "law", parliament can change the law you know - that's what they do! It's the manifesto committment they're not honouring.

zagfles

lauran1902 said:

The fact that some previous uplifts have been more 'generous' than expected doesn't compensate for that fact.  My pension is £8700 per year.  That's all.  I have a very small occupational pension of about the same amount.  Would any one of you who are working like to try and live on that, especially with rising prices all round? 

So you have about £17k income? Or have I misunderstood? Some couples spend less than that, even though they could afford to spend more. Read the "squirrelled nuts" thread here.

Ganga

zagfles said:

lauran1902 said:

The fact that some previous uplifts have been more 'generous' than expected doesn't compensate for that fact.  My pension is £8700 per year.  That's all.  I have a very small occupational pension of about the same amount.  Would any one of you who are working like to try and live on that, especially with rising prices all round? 

So you have about £17k income? Or have I misunderstood? Some couples spend less than that, even though they could afford to spend more. Read the "squirrelled nuts" thread here.

Whilst i agree with you ,a lot of the people on the " Squirreled nuts thread " have in excess of half a million quid and a lot have more ,their worries are exceeding the LTA .

german_keeper

jamesd said:

Personally I'd rather see some split between NI to cover the younger ages portion and inheritance taxation for the older bit, since you can't spend money when you're dead already and it's one of the least painful taxes for the money owners that there can be.

I find it interesting that this is the only mention of the sacrosanct inheritance tax I have seen, and an opinion I completely agree with. Nothing on telly, newspapers, general chit chat either. It just confirms to me how far out of step I am with my opinions on IHT compared to the vast majority of the population. 

xylophone

My pension is £8700 per year.  That's all.  I have a very small occupational pension of about the same amount. 

A  person in full time work might not earn as much as this.

https://www.gov.uk/minimum-wage-different-types-work/paid-an-annual-salary

Thrugelmir

hugheskevi said:

MK62 said:

That said, in real terms the state pension has risen faster than either CPI or earnings (or even RPI)......and that's down to the triple lock.

In April 2010 (Triple lock introduced 2010), the Basic State Pension was £97.65. In April 2021 it's £137.60.

Just for historical perspective, under Labour between 2000 and 2010 (ie pre-Triple Lock) the State Pension also increased significantly above inflation.

The state also took an increasing share of national income. Redistribution is fine whilst the economy is growing overall. When the wheels come off. The plans look foolish and ill thought through.