Triple lock state pension to be 'watered down' - reports

UK prime minister Boris Johnson has been advised by Cabinet ministers to temporarily adjust the triple lock mechanism to increase state pensions, in light of the exceptional 7.4% average earnings leap in the three months to June, according to an exclusive story published today (18 August) in The Telegraph.

There was "a growing consensus among government ministers handling the relevant briefs that increasing state pensions by that much would be both too costly and unfair on workers", the conservative-leaning paper reported.

Two options were "understood to have been submitted to the Prime Minister", both of which would see state pensions rise by much less than the earnings rise.

One would see a two-year - rather than a one-year - average for earnings rises adopted, meaning the fall in incomes last year during lockdown is incorporated.

The second would see average earnings not included in the calculation for pensions next year, with the inflation rate - which is expected to be around three per cent - picked instead.

Both of those options would see the state pension rise by closer to 3% than the more than 7% which should be due under the current arrangements.