UK's Sunak says annual pension rise must be fair to taxpayers

But distortions to the job market caused by COVID and furlough support mean one key measure of wage growth could rise by 8% this year. "Our approach to these things will be driven by fairness, fairness both for pensioners and for taxpayers," he said.

British finance minister Rishi Sunak said on Thursday that this year's increase to the state retirement pension needed to be fair to taxpayers as well as pensioners. Sunak's Conservative Party has committed to raise pensions each year by the highest rate out of inflation, wage growth or 2.5%. But distortions to the job market caused by COVID and furlough support mean one key measure of wage growth could rise by 8% this year.

"Our approach to these things will be driven by fairness, fairness both for pensioners and for taxpayers," he said. Sunak declined to comment on whether an 8% rise in pensions would be appropriate at a time when the government is preparing to cut its main support programme for the poorest working and unemployed Britons by 20 pounds ($27.54) a week. ($1 = 0.7263 pounds)