Reinstating triple lock in doubt as Government faces funding ‘disparit

The triple lock policy guarantees the state pension increases in line with the highest of the rise in average earnings, inflation or 2.5 percent. Payments increased by just 3.1 percent last year as the average earnings element was suspended.Experts at tax and audit firm RSM UK have warned the policy is still in doubt, during a briefing with predictions for the Autumn Budget later this month, when the Chancellor will likely issue a decision about the policy.Express.co.uk asked the team if the triple lock will be reinstated and if it is likely to continue into future years, and if not what could replace it as a policy.Chris Etherington, partner at RSM, said: ‘If he [the Chancellor] doesn’t do it [reinstate the triple lock], there could be rebellions within his own party, so that may be the path of least resistance for him if he wants to get these measures through.’He’s going to have to find the fees to be able to pay it. There’s a disparity there. We’ve got issues with the public sector in particular, and the strikes.READ MORE: Cold Weather Payment pays £25 when there’s very cold weather – are you eligible? The reinstatement of the triple lock on the state pension has yet to be confirmed (Image: GETTY)’That disparity between how certain sides of society are being treated versus others causes bigger problems.’If the triple lock rises in line with the September figure for inflation, it would be up by 10.1 percent, increasing the new full state pension to more than £200 a week.If the inflation measure was ditched, the amount would rise in line with average earnings, at 5.5 percent.Pensions Secretary Mel Stride was asked if the triple lock would be reinstated on Good Morning Britain on ITV.DON’T MISSUniversal Credit warning as your earnings could impact the amount you get [BENEFITS]Mortgage calculator shows how much more you can expect to pay after interest rate rise [PAYMENTS INCREASE]You could avoid inheritance tax with a gift of any amount – but there’s a catch [TAX] The state pension could increase by 10.1 percent next year (Image: EXPRESS)’That means inheritance tax, capital gains tax, pensions, income tax, National Insurance. All these thresholds and bands are set to be frozen, and some may be halved, with more individuals being dragged into tax nets or higher tax rates as a result.’With corporation tax rates already announced and VAT out of action, that leaves income tax and National Insurance as the prime candidates for generating significant tax revenues.’The pensions lifetime allowance may be frozen, which caps the amount a person can save across all their company and personal pension schemes during their lifetime.More people are being hit by the limit after former Chancellor Rishi Sunak froze the cap in 2021.