LONDON (Reuters) – Britain’s government is committed to the mechanism for increasing state pensions even though it is likely to cost billions of pounds more than usual given high pay and inflation, a spokesman for Prime Minister Rishi Sunak said on Tuesday.
The state pension is likely to rise by 8.5% next year after new data on Tuesday showed average weekly earnings growth in the three months to July rose by that amount in annual terms.
The pension triple lock is a government promise to raise publicly funded pensions by the level of earnings, inflation or 2.5%, whichever is highest.
“We remain committed to the triple lock,” the spokesman told reporters. “We will ensure the state pension remains sustainable and fair across generations while providing security and dignity in retirement for millions of people.”
(Reporting by Alistair Smout. Editing by Andrew MacAskill)