13th June 2016
Prime Minister David Cameron has warned that the stresses placed on the public finances due to a vote to leave the European Union could mean the end of the state pension triple lock.
The pension is currently protected by a triple lock in that is rises by the highest of three measures, inflation, average earnings or 2.5%.
The Prime Minister says that Institute for Fiscal Studies research suggests that we face a black hole in the public finances of £40bn by 2020 in the event of a vote to leave.
He says this could mean promises made on the state pension and on NHS funding would be in peril.
“You would have to start cutting things that people really value, whether it is the money going to the NHS or whether it is support for our pension system, and that could mean reviewing the triple lock,” he said.
“If we leave, independent and respected experts like the IFS and National Institute for Economic and Social Research say that by 2020 we will face a black hole in our public finances of up to £40bn.
“In those circumstances, future funding for the NHS could be at risk. Our ability to ringfence and protect spending on health could be at risk, too. This is the cold reality of leaving the EU – that’s why doctors, nurses and the boss of the NHS all say we will be stronger, safer and better off in the EU.”