Tue, 08 Jul 2025

Tue, 08 Jul 2025 UK's pension triple lock to cost three times more

The official forecaster warns public finances are in a "relatively vulnerable position" due U-turns.

* The cost of the state pension triple lock is estimated to be £15.5bn by 2030, three times higher than its original estimate.
* The triple lock ensures that the state pension rises each year in line with either inflation, wage increases or 2.5%, whichever is highest.
* The UK's public finances are in a "relatively vulnerable position" due to pressure from recent government U-turns on planned spending cuts.
* The cost of government borrowing has risen to 1.2% higher than Monday's close following the Office for Budget Responsibility (OBR) report.
* The OBR said that the triple lock has cost around three times more than initial expectations due to inflation and earnings volatility over its first two decades in operation.
* Richard Hughes, chair of the OBR, warned that the UK public finances are in an unsustainable position in the long-run if age-related pressures continue unchecked.
* The state pension is the second-largest item in the government budget after health, and spending on it has steadily risen due to the triple lock and a growing number of people above the state pension age.
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