The British minister says the “triple lock” of the pension is not threatened

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LONDON (Reuters) – UK Economy Secretary Kwasi Kwarteng said Monday he was “fairly certain” that the so-called “triple lock” system of increasing state pensions would not be changed to reduce the cost of dealing with COVID-19 – Pay pandemic.

British newspapers have suggested that the government suspend the “triple lock” promise of increasing pensions by the higher of consumer price inflation, average income growth, or 2.5%.

Partly due to distortions from the coronavirus pandemic, annual wages rose 5.6% annually for the three months to April – adding an additional £ 4 billion ($ 5.5 billion) annual cost to future pensions.

“A lot of things have been discussed in the government, I don’t think this is necessarily the way to go,” Kwarteng told Sky News when asked if the “triple lock” would be put on hold. “I’m pretty sure the triple lock will stay.”

The promise to maintain the pension increase system was in the Manifesto of the Conservative government before the 2019 elections, to which Kwarteng alluded.

“I don’t think the triple ban is threatened at all,” he told The Times radio in a later interview.

“It was part of our manifestos, remember. It’s something we’ve been committed to for a number of years, and I haven’t seen anything to suggest we will undo it.”

(Reporting by Guy Faulconbridge; writing by Michael Holden; editing by Alistair Smout)



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