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OECD calls for reform to UK pension triple lock

Published Nov 29, 2023 13:31 Updated Nov 29, 2023 13:40
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© Reuters. OECD calls for reform to UK pension triple lock

Proactive Investors - The Organization for Economic Cooperation and Development (OECD) has called for the UK to reform the triple lock policy on pensions.

The so-called triple lock policy was introduced by the coalition government in 2010 to ensure the value of the state pension was not less than the cost of living or income.

It is a guarantee to ensure that the state pension increases every year by whichever is higher: inflation, average earnings, or 2.5%.

In its latest economic outlook, the OECD said that in the UK: “Ageing and high inflation coupled with the triple lock will push up pension spending by about 0.8% of GDP by fiscal year 2027/28.”

It added that this was more than the amount of public investment, as a percentage of GDP, that is needed to decarbonise power of 0.5%, or to ensure the uptake of electric vehicles, of 0.4%.

Higher debt interest has eroded fiscal headroom, and according to the economic body, maintaining and strengthening “current fiscal efforts” will be essential due to the “challenging backdrop of high borrowing and debt”.

Reforming the triple lock policy could help to ease the diminishing of the fiscal headroom in the UK economy, the OECD said.

“Reforming the costly triple lock uprating of state pensions would help, by indexing pensions to an average of CPI and wage inflation, and by providing direct transfers to poor pensioners to mitigate poverty risks,” it said in the report.

“Delivering on planned supply side reforms to reduce labour market inactivity and further reducing policy uncertainty for business investment would also improve fiscal sustainability by raising GDP.”

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OECD calls for reform to UK pension triple lock
 

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Comments (4)
Alan Read
Alan Read Nov 29, 2023 16:55
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Our puppet Governments WILL follow the dictats from their masters !!
Gregory Shaw
Gregory Shaw Nov 29, 2023 16:07
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leave the pensioners alone. theyve put into the system all their lives, unlike those who come in off the boats etc and get given handouts. this countrys finished
Colin Flockton
Colin Flockton Nov 29, 2023 15:06
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Another unelected quango like UN WEF WHO ECB etc pontificating where they arent invited or welcome
jon lunt
jon lunt Nov 29, 2023 15:06
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well said pal. they all need to p.i.$.$ off and trying getting elected b4 sticking there nose in.
John Sloan
John Sloan Nov 29, 2023 14:56
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The OECD can get in the bin!
Roy Fearn
Roy Fearn Nov 29, 2023 14:56
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I guess you are a pensioner? :)
 
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