Britons will spend more on state pension than on defence, schools and police
The government's "triple lock" which protects the pension by matching the average earnings, inflation or 2.5 percent whichever is highest, is behind the rise.
State pension spending in two years’ time will overtake education, policing and defence put together, say official figures.
Owing to the “triple lock” the bill rose last year by £6billion to £110billion.
By 2025 this is set to be £135billion, £2billion more than the combined daily budgets of the Department for Education, the Home Office and Ministry of Defence.
Experts warn the lock, which increases the pension by whichever is highest out of average earnings, inflation or 2.5 per cent, is “unsustainable” amid huge cuts across Whitehall.
A government source said it was a “problem for the next government”.
Steve Webb, the ex-Liberal Democrat pensions minister, said taxes may have to rise. He said: “Pensioners are a protected group electorally, so the state pension gets protected. The NHS is a kind of national religion and is protected.”
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Mr Webb said eventually other spending cannot be “squeezed anymore, and that’s when the crunch really comes”.
The state pension rose by 10.1 per cent this year. Both main parties have committed to keeping the triple lock until 2030.
The Tory peer Baroness Altmann, an ex-pensions minister, said: “I don’t think the triple lock is a sensible policy.”
She proposed a “double lock” based on inflation and earnings plus raising the years of contributions to qualify.
But she said the bill will rise, adding: “Unless you’re recommending euthanasia or mass poverty for the elderly, how else would you do it?”
