Pensions: cost pressures rise as inflation bites; triple lock debates unfold; governments weigh tax or spending shifts to fund pensions amid budget strains.
The government has signalled a shift in how the state pension will rise from 2030, with reforms replacing the highest-of-three rule with a focus on inflation and 2.5%, funded by a National Care Service. Reactions vary as experts warn about long-term effects on savers and taxpayers.
Civil service pension delays after Capita's takeover have left thousands waiting on payments, with some facing rent arrears and food-bank use. The government vows to insource the scheme and enforce improvements as auditors review Capita’s systems.
Prime Minister Andy Burnham has announced the triple lock on the state pension will remain until the end of this parliament but from April 2030 will rise each year by the higher of inflation or 2.5%, removing the automatic annual link to earnings. The government says the change will free savings to build a National Care Service; critics warn of pensioner losses and political fallout.