The Chancellor looked visibly uncomfortable on GB News as he was confronted with the potential of the bumper increase in pensions as the country’s debt piles higher and higher. The triple lock mechanism promises the basic and the new state pension will be uprated each year by the highest of earnings, prices or 2.5 percent. However, as more people get back into work after a year of downturn, it is thought wages data will be somewhat warped for the coming year.
Average wages are now rising by approximately six percent, Mr Neil was keen to highlight.
However, economists have expected this to rise to eight percent in the coming months.
As a result, this may mean the state pension soars in value, which has led some to question whether the policy is still viable.
Mr Neil pressed Mr Sunak on whether the policy will be maintained in the future, or if it would be modified or scrapped.
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The Chancellor was quick to respond with his perspective on the issue, saying: “Of course the triple lock is still Government policy.
“And if we look at what that specific policy has achieved, pensioner poverty is now far lower than it was when the policy was first introduced.”
Mr Neil continued to pile on the pressure regarding the potential for an eight percent increase, simply asking: “So the answer’s yes?”
More to follow…