No10 rule out abolishing triple lock on pensions – but could suspend it to pay for coronavirus
DOWNING Street have ruled out abolishing the triple lock on pensions- but could suspend it to pay for the coronavirus.
The Chancellor is said to be looking at scrapping the promised increases amid fears over the growing cost of the pandemic.
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According to s, Mr Sunak is worried the triple lock bill could soar due to a dip in wages caused by the government’s furlough scheme.
Now No10 have suggested they could suspend it.
A No10 source said: "These are unique and challenging economic circumstances and we cannot hide from that.
"Decisions on tax and pension policy are announced at the budget.
"There are no plans to abolish the triple lock and we will always stand by pensioners."
Suspending the lock would see the Tory manifesto pledge to keep the “triple lock” in tatters, ten years after it was first introduced by David Cameron.
It promised to raise the state pension yearly in line with whatever is higher: wage rises, inflation, or 2.5 per cent.
A massive nine million furloughed workers currently have 80 per cent of their wage subsidised up to £2,500 a month.
However, Mr Sunak has confirmed he will soon start weaning off the government support, meaning businesses will have to pay towards salaries for staff on the furlough scheme.
The scheme will continue until the end of October.
Average wages will increase next year, leaving the Treasury shelling out very large increases to pensioners in 2021.
Now Mr Sunak is said to be arguing it must be suspended for two years.
Downing Street and the Treasury insisted in a statement that the “Government is committed to supporting pensioners”.
Both the Chancellor and Boris Johnson have refused to rule out tax rises, with the Government scrambling for funds during the crisis.
Asked about the triple lock by MPs last month, Mr Johnson said: “We are going to meet all of our manifesto commitments. Unless I specifically tell you otherwise.”
Last month an internal Treasury document claimed that the pandemic would cost almost £300 billion this year alone, requiring tax rises, a two-year public pay freeze and an end to the triple lock.
The Chancellor was quizzed over the plans at the time, and asked if he would be prepared to raise taxes and break the Tory manifesto promise not to.
And he refused to rule it out directly.
He said: "Of course it is my job to think to think about everything, but what we are thinking about most and foremost at the moment is protecting people's health…
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"But also to protect people's jobs and support business at this time, to make sure we can preserve as much of that as possible for the time when restrictions are lifted and we can get our lives back to normal," he said.
"That is what is occupying all our time at the moment."
