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Politics latest news: Temporarily cut triple lock to fund tax cuts, George Osborne suggests

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George Osborne suggested the Government could temporarily water down the triple lock to fund tax cuts or more spending on public services amid a growing debate about the future of the state pension guarantee. 

The triple lock is a key Tory pledge that ensures the state pension rises by the highest of three metrics: average earnings, inflation or 2.5 per cent.

In the past, average earnings have always been calculated using the figure for wages plus bonuses but the Treasury is understood to be considering stripping out the impact of bonuses in a move which would mean a smaller than expected increase for pensioners next April. 

Mr Osborne said if he were chancellor today he would be “very tempted to under-rate, i.e. not increase pensions by as much as the triple lock and other benefits, working age benefits that go to other people in society, by maybe like one or two per cent”.

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