Andy Burnham has been warned not to bow to demands to scrap the pension triple lock, as the Organisation for Economic Co-operation and Development (OECD) labels the mechanism unusually generous and recommends medium-term reform. The incoming Prime Minister is under pressure from the Paris-based financial body to address Britain's long-term debt issues by reforming the benefit.
Campaigners Urge Burnham to Uphold Triple Lock Pledge
However, the OECD's warning has sparked fury from campaigners, who insist Burnham must stick to his manifesto commitment to safeguard pensioners. Dennis Reed, of Silver Voices, told the Daily Express: "Just like other recent think tank reports, the OECD picks out the Triple Lock as a major economic problem, on the basis of flimsy evidence."
Reed argued that the OECD's own report admits the UK's average public expenditure on pensions is relatively low, and that less of the economy (GDP) is spent on the state pension than in other advanced economies. He added: "It fails to mention that the value of our state pension is much, much lower than almost all our economic competitors. At the end of the day it is a political choice to ensure UK retirees can live in dignity in their twilight years and so-called 'sustainability' is a chimera. Andy Burnham is advised to ignore this flawed report and stick to his guns in support of the Triple Lock."
OECD Brands Triple Lock Unusually Generous
The OECD's latest survey on the United Kingdom targets the triple lock, which sees the state pension rise by the highest of inflation, average earnings, or 2.5%. The body brands the mechanism "unusually generous" compared with other international models. It points out that the triple lock "amplifies" uncertainty of spending when it comes to earnings and inflation shocks.
The OECD says the government's effort should focus on setting the ground for lasting reform. But Burnham has said he will retain the triple lock, stating it is "important that the commitment in the manifesto stands."
Cost of Living Tsar Calls Triple Lock Unsustainable
The government's cost of living tsar, Lord Richard Walker, has described the triple lock as "mathematically unsustainable." This adds to the pressure on Burnham to consider reform, despite his pledge to protect the benefit.
The Daily Express has long campaigned to protect the triple lock, joining campaigners who argue it is a vital source of income for pensioners. The debate continues as Burnham prepares to take office, with the OECD's report adding fuel to the fire over the long-term sustainability of the policy.
