Government will have to abandon ‘con trick’ of pension triple-lock as OAP numbers soar says ex-Minister
Ex-Pensions Minister Baroness Altmann demanded the government scrap 'triple lock' ensuring pensions rise ahead of spike in baby boomers
TAXPAYERS will be hit with a huge bill to fund a near-10 per cent rise in the number of pensioners in the next decade, Ministers have been warned.
Baby-boomers being paid state pensions will rise by 9.1 per cent in the next Parliament compared to the five years to 2020, figures show.
The huge spike must mean the government abandons the ‘triple lock’ income guarantee for the elderly, according to former Pensions Minister Baroness Altmann.
The mechanism guarantees that pensions will go up the same as average earnings, inflation or a minimum of 2.5 per cent.
The Tory peer said: “This increase in state pension age has pushed a huge extra cost into the next Parliament.
“The triple lock is being applied when the number of new pensioners is lower than what it will be. It’s a bit of a trick.
“It has fooled a lot of pensioners who think, ‘Well, of course the government thinks about pensioners, they’ve done this triple-lock.’
“But it’s not all it’s cracked up to be. It’s a con trick. I would advise not having the triple lock beyond 2020. We need much fairer increases across the board.”
The 9.1 per cent rise in pensioners claiming state pensions was detailed in the Office of Budget Responsibility report this week.
The government has pledged it won’t abandon the ‘triple lock’ before the next election.
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The OBR report also revealed the ageing population will cost the UK £30 billion each decade over the next 50 years due to NHS, pensions and social care costs.
The state pension age is due to remain stable at 66 in October 2020 with a further rise to 67 by 2028.
A Government spokesperson said: “We are increasing the incomes of millions of pensioners by meeting our pledge on the triple lock this parliament.”