Pensions to escape government cuts to benefits

The government is to spare pensioners from a planned freeze on benefits, preserving its 'triple lock' commitment despite facing pressure due to the recent jump in inflation, according to the Financial Times.

The government pledged in the coalition agreement that pensions would be guaranteed an annual increase of at least 2.5%, or a rise linked to wage increases or inflation, whichever was higher.

But the shock jump in the consumer price index (CPI) measure of inflation to 5.2% in September has placed the government under pressure, as it faces a large rise in pension payments.

However, the FT said chancellor George Osborne (pictured) would resist making any cuts to pension payments, and is instead examining the freezing of other benefits such as the jobseekers allowance and employment support allowance.

It said options available to the Treasury included a freeze on some benefits, linking increases to the 2.5% rise in average wages rather than the 5.2% inflation rate, or measuring inflation over six months and so ironing out the high September figure.