The government will break its promise to "triple lock" the amount by which the state pension is adjusted for inflation, the National Pensioners Convention (NPC) has said.
Chancellor George Osborne said in his inaugural 2010 budget the government would increase state pensions in line with the highest of CPI, average earnings or 2.5%. Traditionally, if inflation is used to index the pensions, the inflation figure in September of the current year is used as the basis for the state pension increase in the following April. However, Dot Gibson, general secretary of the NPC, said pensions minister Steve Webb has refused to confirm which month's inflation the government will use as September's CPI stood at a record high of 5.2%. "I do not understand why the...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
