The “Triplelock” was introduced in 2010 and intended to give reassurance to pensioners about their income from the State. It links annual state pension increases to the highest of inflation, average wage increases or 2.5%.
Sounds simple enough, but everything is not quite what it seems.
Inflation used to be defined as R.P.I – the Retail Price Index. Then it got changed to C.P.I. – the Consumer Price Index which somehow ended up lower than R.P.I. That’s the first of the triplelocks unlocked.
Wages since 2010 have been held down by Government austerity measures – unless you are a banker or politician. That’s the second of the triplelocks unlocked.
So that just leaves the 2.5% which is a number that can’t be changed – unless we erode pensioners’ savings, dramatically reduce the value of annuities and eliminate final salary pensions. That’s the third triplelock unlocked.
Hey Presto! Politicians promises