OECD urges reform of 'costly' state pension triple lock

State pension change would ease eroded ‘fiscal headroom’

Jenna Brown
clock • 2 min read

The government should change the “costly” state pension triple lock policy to give it more “fiscal headroom” against a continuously challenging economic background, according to the Organisation for Economic Co-operation and Development (OECD).

The Paris-based economic policy forum recommended the UK government should index state pensions to an average of the Consumer Prices Index (CPI) and wage inflation instead of the current system. It added that it should also provide direct transfers to poor pensioners to "mitigate poverty risks". Commenting specifically on the UK in its latest Economic Outlook report, it said: "Maintaining and strengthening current fiscal efforts is essential against the challenging backdrop of high borrowing and debt, and as higher debt interest payments have eroded fiscal headroom. "Reforming the cos...

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