David Cameron has vowed to protect the value of the State Pension if he returns to power after the general election in May 2015.
The so-called ‘triple lock’, introduced by the coalition government, guarantees that the State Pension will rise each year in line with earnings, inflation, measured by the Consumer Prices Index (CPI) or 2.5%, whichever is higher.
Speaking on Sunday Mr Cameron has promised to keep the ‘triple lock’ in place until at least 2020 if he is re-elected as Prime Minister.
State Pension ‘triple lock’
Under the system the State Pension for a single person, has risen from £95.25 per week in 2010 to £113.10 in 2014/15.
The news was welcomed by pension campaigners and experts alike, although there has been at least one dissenting voice.
Towers Watson has pointed out that if the ‘triple lock’ had not been introduced and the State Pension increased in line with the Retail Prices Index, as was previously the case, it would now be £114.20; £57.20 per year higher than the current level.