Andy Burnham announces £239 pension increase for older retirees
Andy Burnham is planning to give state pensioners born before 1953 a £239 boost in their state pension payments. The increase will benefit those on the basic state pension, specifically men born before 1951 and women born before 1953.
The basic state pension will rise by a minimum of 2.5% next April, following the new Labour Party government's commitment to maintaining the triple lock metric. This equates to a £4.60 weekly increase, amounting to £239 over a 52-week year, providing a helpful boost for older retirees who may be struggling financially.
Economic advisers support scrapping expensive triple lock
Mr Burnham has recruited several respected economists to his team in an effort to reassure markets, including former Treasury minister Lord O’Neill, former Bank of England chief economist Andy Haldane, and former OBR Chief Richard Hughes. According to The Times, these advisers believe that scrapping the expensive triple lock, which is due to cost taxpayers billions, is a "no brainer" amid growing pressure on public finances.
However, Labour Party pensions minister Torsten Bell stated at a launch event for the OECD’s report: “The government’s manifesto commitment is to the triple lock throughout this parliament, and that is going to happen.”
OECD urges reform of triple lock system
Last week, the OECD urged the government to maintain momentum on policy reforms to improve living standards and economic performance. The organisation described the triple lock as "unusually generous" compared to other countries. In a report published on Wednesday, the OECD said: “The triple lock indexation of state pensions puts upward pressure on public expenditure and adds significant fiscal risks by exposing public finances to supply shocks, thus requiring a timely reform that overcomes political economy constraints.”
The OECD added: “Given political economy challenges and the existing commitment to the triple-lock guarantee over the current Parliament, the government’s effort should focus on setting the ground for lasting reform.”
