Pension POLL: Should triple lock be broken if pensions rise 8% under rule?
State Pension payments offer support to older people who are eligible to receive the sum from the Department for Work and Pensions (DWP). To receive the payment, individuals must put forward a set number of National Insurance contributions throughout their lifetime. For many people, then, the state pension serves as a primary source of income in retirement, particularly useful when the regular payment of a salary or wages is lost.
Understanding the importance of a state pension to millions of Britons, the Triple Lock Mechanism is in place to protect the sum.
First introduced in 2010 by the then-coalition government, the mechanism is designed to protect the state pension in real terms.
Triple Lock sees the basic and new sum rise by the highest of three key components: average earnings growth, inflation or 2.5 percent.
For this tax year, the sum increased by 2.5 percent, but there has been discussion about the pending increase for the forthcoming year.
READ MORE: State pension: Warning as ‘low’ sum leaves millions at risk
