Share lines
Since 2010, pensioners have become, on average, richer than workers- CPI, rather than triple lock, would have saved enough to lower income tax rates
- The Lib Dem triple-lock protected pensioners from welfare cuts that fell on workers
- Since 2010, pensioners have become, on average, richer than the working age population. Welfare spending on pensioners is up by 10% in real terms, but down by around 5% for people of working age and children.
- The triple lock on state pensions has been costly. Had the state pension been uprated in line with CPI inflation the Treasury would now be £8.6bn a year better off.
- The opportunity cost is large. This sum could have paid for a cut of 2 percentage points in the basic rate of income tax or increased spending in areas of greater need.
- The Liberal Democrats insisted on implementing the policy, which is partly responsible for the rise in support for Labour from those in their 30s & 40s.
- Conservatives have now dropped their commitment to move to a double lock, which is a missed opportunity to promote intergenerational fairness.
- At the very minimum, the 2.5% guarantee in the triple lock should fall to 1.5% to protect the Treasury from an environment where inflation and earnings hover around 2%.
