Has the triple lock been fixed?
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Has the triple lock been fixed?
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The government has announced a major change to the state pension triple lock. The new system will continue to protect pensions against inflation and guarantee increases of at least 2.5%, but changes how increases in earnings feed through into the state pension over time.
So how will the new triple lock actually work? Why did the existing system create a “ratchet effect” in pension spending? How does the new approach address that problem, and what role does the 2.5% guarantee still play?
Helen Miller is joined by IFS economists Jonathan Cribb and Heidi Karjalainen to explain what is changing, what it could mean for pensioners and the public finances, and the questions the reform leaves unresolved.
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