State pension triple lock could be scrapped for 20,000 pensioners

20,000 Isle of Man pensioners are at risk of losing the State Pension triple lock. Options to replace the "triple lock" state pension uprating policy have been outlined in a report on the sustainability of the Isle of Man's National Insurance Fund.

The £1.07bn fund is topped up annually with money left over after contributions from workers have been used to pay for the majority of benefits and state pensions. However, an actuarial report in 2022 forecast the surplus would reduce and the fund would be exhausted by 2047-48, partly due to people claiming state pensions for longer.

Treasury Minister Alex Allinson said steps were needed to "guarantee the long-term future" of the fund and for a "national conversation" should be had about the situation. Treasury minister Allinson said: "With an ageing population, the Isle of Man is facing increased health and welfare spending."

READ MORE UK set to be hammered by 5cm of snow with two parts of England 'bearing brunt'

Mr Allinson told the Telegraph he believes a "national conversation" is required over how to preserve the long-term future of the Isle of Man's State Pension system. In his 2023-24 budget speech Allinson said the triple lock was “not sustainable in the long-term without putting increased pressure" on those who paid NI, which he said would be unfair.

Commenting on the latest report, he said: "Over the coming months I will be engaging with Tynwald members to develop a plan that will ensure the long-term sustainability of the current scheme." A further report would be provided prior to next year’s budget, he added.

The Labour Party government has said it is committed to the triple lock, with millions to see their State Pension rise by up to £1,700 during the course of this parliament thanks to the policy. In April, the State Pension in the UK will increase by 4.1 percent.

This takes the full, new flat-rate State Pension to £230.25 per week. Those on the full, old basic State Pension, will receive £176.45 per week. The cost of the State Pension is forecast to rise to £158billion in 2028-29, in large part due to the effect of the triple lock.