Rishi Sunak 10.1% hike as pensioners await verdict ‘will do the right thing’ Personal Finance | Finance

The triple lock guarantees state pension rises of 2.5 per cent, whichever is higher in wages and inflation. New Prime Minister Rishi Sunak He was asked if he would commit to the policy, which was suspended last year.

A spokesman for the Prime Minister said: “This is a matter covered in the financial statements and we do not comment ahead of any financial statements or budgets.

“But what I can say is that through his record as president he will do the right thing and be compassionate to the most vulnerable.”

His predecessor, Liz Truss, said she was committed to the policy, but her recent exit has thrown the issue back into the air.

About 12.5 million people receive State Pension They face real-term cuts in income if their payments do not rise in line with inflation, which is currently around 10 percent.

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“While Sunak’s predecessor, Liz Truss, pledged to triple lock in what turned out to be her final Prime Minister’s Questions, Chancellor Jeremy Hunt refused to do so before her intervention.

“Given the current focus on fiscal conservatism, it is difficult to be certain whether or not Chung will maintain Truss’s triple lock commitment.”

If the inflation element of triple lock was dropped and average earnings growth was used instead, the full new state pension would rise to £195.35, £442 a year less than the triple lock amount.

Ms Suter said: “In the longer term, the government needs to review the triple lock and decide what it is trying to achieve.

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“Currently it provides real-time increases in the value of the state pension at random intervals, and it has become clear that there is a limit to the amount the Treasury is prepared to pay out of pensioners’ incomes.

“If the government really wants to increase the state pension, it needs to set out its case and the path to achieving that goal.”

The government is set to set out its fiscal plan in the next budget, which has been delayed from Halloween to November 17.

The medium-term fiscal plan will be released in the autumn report, along with new economic forecasts from the Office for Budget Responsibility.

Chancellor Jeremy Hunt said this morning: “I want to make sure that this will demonstrate debt reduction over the medium term which is very important for people to understand.

“But it is also very important that the report is based on the most accurate possible economic forecasts and forecasts of public finances.

“That is why the Prime Minister and I have decided that November 17 will be upgraded to a full Autumn Statement.”

Ms. Suder said Mr. Sunak may be thinking about incremental plans Benefits He considers what to do with the triple lock.

He said: “In terms of costs to the exchequer, the difference between the revenue link and the inflation link would be £4 to £5 billion.

“But part of the political challenge here relates to benefits – if the state pension rises in line with inflation, can the new Prime Minister justify increasing benefits ‘only’ in line with income? If he does, complaints about intergenerational injustice will inevitably intensify.”

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