Extra £100m bill for state pension rise next year

Last month the provisional estimate was 4.0% but today this has been revised to 4.1%.  Just this extra 0.1% adds around £100m to the state pension bill under the triple lock formula.

Scrap the triple lock and normalise the state pension with the threshold for basic rate of income tax. And then up it as bonus to keep pensioners happy.

The state pension will always be tax free. Is a headline governments can be won on.

Also by brining these together it unites pensioners with workers rather than dividing them.

Off set the cost by a new annual wealth tax of 2.5% on the top earners (income over 1 million a year). Then use future years to create a JSIPP for all those kids entering primary school with a deposit of £3-5k. - in time this could replace the state pension by letting compounding do its work.

• Steve Webb, LCP - IFA Magazine →

Published 28 October 2024, with 149 words.