'Triple lock' to stay for Manx pensioners in 2025

People who receive state pensions in the Isle of Man will see their payments increase 4.1% - in line with the UK's "triple lock" principle - from April, the government has confirmed.

Treasury Minister Alex Allinson had outlined plans to bring forward a "double lock guarantee" for those who retired after 5 April 2019 as part of the 2025-26 budget to preserve the National Insurance Fund.

But those plans had faced criticism from several MHKs, prompting the minister to agree to separate the changes from the budget debate itself.

A motion on the island's National Insurance scheme is now set to be tabled for April.

A revised Manx State Pension was introduced by the Treasury in 2019 and it has been applied to those who retired after 5 April that year.

The proposed changes would only have affected those retirees, with anyone receiving payments prior to that continuing to receive the UK percentage uplift to the basic Retirement Pension.

While the "triple lock" ensures increases are based on the higher of UK CPI inflation, average earnings, or 2.5%, the "double lock guarantee" would be based on either Manx inflation or 2%.

A report published in October forecast the island's £1.09bn NI Fund would run out by the 2047-48 financial year.

But in a debate in the House of Keys on Tuesday, concerns were raised over a lack of consultation with politicians and the public over the changes and the inclusion of the measures within the budget itself.

Allinson said that, after listening to the comments, it was "clear that more time is needed to ensure there is consensus around the best way to secure our NI Fund and protect pensions in the future".

"I will be working with Tynwald Members over the coming months to establish a public consultation so all views can be heard and a sustainable policy agreed," he added.

The proposed 4.1% rise in both the basic Retirement Pension and Manx State Pension will now be put forward as part of the Isle of Man Budget 2025-26 instead.

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