Did Clegg create the conditions for Corbyn?

According to Rupert Harrison, George Osborne’s former special adviser, the triple lock on pensions was a Liberal Democrat demand for the Coalition agreement in 2010, which was accepted by the Conservatives on the basis that it would just cost £50m. The triple lock has meant that the state pension has been increased by the highest of earnings, inflation or 2.5% since 2010. Analysis by the Centre for Policy Studies shows that this decision has been one of the most costly and long-lasting decisions taken by the Coalition Government. The report further highlights that the policy has been one of the main causes of growing inter-generational inequality.

Key conclusions include: since 2010, welfare spending on pensioners is up by 10% in real terms but down by 5% for workers and children. On a per household basis, welfare spending is up by 4% per pensioner household and down by 10% for children and those of working age. Had the state pension been uprated in line with CPI inflation instead of the triple lock – which would have maintained its purchasing power – the Treasury would now be around £8.6bn a year better off. The opportunity cost has been large. This sum could have paid for a cut of 2 percentage points in the basic rate of income tax or increased spending in areas of greater need.

Read Full Report

Explore our reports

  • Reset
Advanced search

Related Events




Acting now for green, inclusive growth

This event, hosted by UK think tank the CPP will examine new and evolving challenges and identify innovative solutions for…

More Info