- An influential economic think tank, the Organisation of Economic Co-operation and Development (OECD), has urged the UK government to consider ditching the state pension triple lock and reviewing VAT exemptions to raise more funds for public spending.
- The OECD described the triple lock, which guarantees the state pension rises by the highest of inflation, wage growth, or 2.5 per cent, as 'unusually generous' compared to other countries and a source of 'significant fiscal risks' for public finances.
- These recommendations come as Andy Burnham prepares to take over as prime minister, with some of his key advisers reportedly believing that scrapping the expensive triple lock is a 'no brainer' amid growing pressure on public finances.
- The Office for Budget Responsibility (OBR) previously warned that the triple lock is a 'substantial pressure on public spending', estimating it will add about £15.5 billion to state pension spending each year by 2029-30.
- Despite these calls, pensions minister Torsten Bell affirmed the government's commitment to the triple lock throughout the current Parliament, while also stating that raising VAT is not advisable during a cost-of-living crisis.
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