Rishi Sunak panic: Wages could SOAR in 2021 sparking chaos for ALL state pensioners

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This is due to the economic fallout from the coronavirus, which is now forcing the Tory party to confront home truths. The triple lock rises in lockstep with whichever measure is higher out of wages, inflation or 2.5 percent.

The Treasury said official forecasts show wages could soar in 2021, rebounding from the dip caused by the job retention scheme.

Nine million people are currently cashing in on the scheme, which pays them 80 percent of their wages, supporting companies and the economy.

Therefore if the pledge isn’t broken, the value of the state pension could rise sharply.

The triple lock has been in place since 2010, and is designed to protect the spending power of pensioners.

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Rishi Sunak. (Image: Getty)

Countdown blunder: Rachel Riley's huge mistake after replacing Carol Vorderman exposed

The triple lock protects pensioners incomes. (Image: Getty)

The rise would not hit until 2022, because of the 2.5 percent minimum annual increase, and this year’s dip in wages. It is based on a sharp recovery in wages when the scheme ends.

Changes to the triple lock could be in place for at least two years, as calculations for increases are based on average wage rises to September 2021.

Pressure is mounting inside the Treasury to take swift action on this.

The Financial Times reported Prime Minister Boris Johnson has told Mr Sunak that new state pension formulas should include safeguards, according to people close to the talks.

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Pensions estimates. (Image: Express)

Number 10 and the Treasury issued a joint statement, saying: “Announcements on tax and pensions policy are for Budgets. The government is committed to supporting pensioners.”

The coronavirus crunch has become particularly apparent in the last two weeks, as a slew of economic data has been released depicting gloomy prospects.

This morning, inflation figures showed the UK could be headed for deflation, as shops slash cuts to lure in customers.

Last week, ONS figures also showed the biggest monthly contraction in GDP on record.

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The UK economy has been pummelled by coronavirus lockdowns. (Image: Getty)

The triple lock policy has long faced opposition, in the face of an ageing population and a rapid rise in the number of people claiming pensions over the last few years.

Putting the triple lock on hold or dialling aspects of it back would start a public debate on its merits for the long run.

Some experts say the move to suspend it is inevitable in the current climate.

Other rigid economic policy proposed by the Conservatives could also be put on the table, if this is up for negotiation.

National insurance, VAT and income tax could be next.


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