The Treasury has warned pensioners could see their incomes "eroded" by higher inflation, in a report on the impact of a British exit from the European Union.
The document 'Effects on pensioners from leaving the EU' warned of a 'shock scenario' in which the basic State Pension's safeguard triple lock would be negated by inflation, with pensioners £137 a year worse off in real terms by next year. The State Pension triple lock guarantee means the pension increases each year by either the earnings growth, inflation or 2.5%, whichever is highest. The Treasury based its assumptions for the immediate impact on the UK economy of leaving the EU on two scenarios: the 'shock' scenario and 'severe shock' scenario. It assumed in both scenarios the U...
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