Triple-lock pensions no longer viable post-Brexit
The former Work & Pensions Secretary has called on Theresa May’s government to break the so-called ‘triple-lock’ on pensions, whereby pension rise in-line with either the increase in average earnings, the rate of inflation or 2.5% – whichever is the highest.
Moving from earnings to the triple lock has cumulatively cost £18 billion this year.
Iain Duncan Smith
Mr Duncan Smith resigned from David Cameron’s government in March. He told the Andrew Neil on the BBC’s Sunday Politics Show that there was : “now the danger of a misbalance between the generations” and that he felt that government spend on pensions was spiralling “out of control”.
Brexit means : inflation
One of the immediate consequences of Brexit has been the dramatic drop in the value of the pound. As a nett importer of goods, the UK faces a sharp spike in inflation – particularly in petrol, heating oil, consumer electronics, aviation and food – all areas keenly reflected in the inflation ‘basket’. Only three days ago we reported Apple announcing price increases of 20% in it’s MacBooks for the UK market.
The impact on pensions could be dramatic. The ‘triple-lock’ was created at time of historically low inflation, something Brexit is about to end resoundingly.