The triple lock on rises in the state pension could cost the government up to £20 billion in a single year in the wake of the coronavirus crisis, according to internal government figures.
Rishi Sunak is considering breaking the Conservatives’ manifesto commitment to a “triple lock” on increases in the state pension amid mounting fears about the cost of the coronavirus crisis.
Officials are concerned that pensioner incomes could rise by as much as a fifth in 2022 under the triple lock while millions of people are losing their jobs.
A government source told The Times: “The unspoken story is if we don’t reform triple lock this is the baby that eats you out of house and home.
“When everyone else is going to be poorer and inflation is going down as well, pensioners will be seeing huge increases in their income. It’s unaffordable and unfair.”
Mr Sunak is arguing that the triple lock needs to be suspended for two years.
Last month an internal Treasury document concluded that the pandemic would cost the exchequer almost £300 billion this year and could require income tax rises, a two-year public pay freeze and an end to the triple lock. (Source: The Times)