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The chancellor’s position on lifting the state pension makes no sense

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The government has got itself into a fine muddle on the triple lock pension guarantee, David Cameron’s gift-cum-bribe to older voters in 2010 that has ricocheted down the years.

On the one hand, Boris Johnson and Rishi Sunak argue that awarding inflation-matching pay rises to public sector workers would risk an “inflationary spiral” and so should be avoided.

On the other, the chancellor maintains that lifting the state pension by 10% – the figure likely to be produced by the triple lock formula – wouldn’t create inflationary pressures.The position makes no sense.

Income increases, whether delivered via pension payments or pay packets, all contribute to aggregate demand and spending capacity.

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