Downing Street defends pledging sharp hike in pensions while urging workers to accept real terms pay cuts

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A Number 10 spokesman said the chancellor believed the government's triple-lock commitment could be met 'without stoking inflationary pressures'

He told reporters:"It's always about striking the right balance when it comes to making sure that we reward our public sector workers fairly whilst also not doing anything that is irresponsible with the public finances more broadly.

"The Chancellor needs to consider this all in the round and I think the view is that we can meet that commitment without stoking inflationary pressures, but you know, we did take difficult decisions with regards to the triple lock with a temporary one year suspension."because a surge in wage growth data in 2021, skewed by the impact of the pandemic, could have translated into a much bigger than usual pension hike.

Mr Clarke confirmed the policy in a written answer to Labour MP Janet Daby about help available to pensioners facing inflationary pressures. It will mean an increase in pensions that will be much higher than inflation at the time, which is by then expected to have subsided from its current four-decade highs.Mr Clarke told Sky News on Monday:"If we are going to forestall the evil of inflation... then we are going to have to show collective, society-wide responsibility.

 

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