PENSIONERS will get an income boost next April after Boris Johnson is said to have overruled Rishi Sunak to make sure the triple lock stays in place.
Yesterday the Government tabled new laws to avoid the state pension being frozen next year – and the manifesto pledge to keep pensions rising will stay in place.
The Chancellor is said to have expressed concerns about whether to keep it in place this year due to the huge costs the Treasury have at the moment – and a wall in wages caused by the furlough scheme.
Once the scheme ends there’s expected to be a sharp fall in wages, which will bounce back the year after, and will lead to a jump in pensions the following year.
This is because the triple lock raises the state pension by whichever is highest – wages, inflation or 2.5 per cent.
Pensions are expected to rise by 2.5 per cent next year as a result of the legislation.
It’s likely that the Treasury will make tweaks to ensure that the state pension doesn’t rise by a predicted 7.4 per cent the year after next – as it will cost an extra £2billion a year.
Work and Pensions boss Thérèse Coffey said: “In these difficult times, I want to give pensioners peace of mind about their financial health.”
The Times reported that the PM personally overruled the Chancellor on the decision.
A Government source told the paper: The PM has put his foot down and overruled the Treasury. He believes very strongly that we must deliver on our manifesto pledges.”
The Tories also promised not to raise income tax, VAT or national insurance throughout their time in office.
It comes as Rishi will today reveal his Winter Economic Plan to save thousands of jobs over the coming months.
He is expected to unveil a new part-time furlough plan where the state tops up the wages of people who can’t work all their hours during the crisis.
Coronavirus loan schemes and the VAT cut for hospitality are expected to continue too.