The Treasury Minister has clarified the statutory framework behind the Isle of Man’s use of the triple lock on state pensions.
Minister Chris Thomas confirmed in a written answer that the island has continued to follow UK uprating policy as a matter of choice for most pensioners.
Responding to a written question from Onchan MHK Julie Edge, the Treasury Minister said the island is legally required to match UK pension rates only for people who reached state pension age before April 6, 2016, under the 1977 social security agreement with the UK.
For those retiring after that date, the Treasury is free to set its own uprating levels but has so far opted to mirror the UK’s triple lock.
Triple Lock Increases
The triple lock increases pensions by the highest of UK earnings growth, inflation or 2.5%.
The Minister noted the one‑year suspension of the earnings element in 2022, when UK wage growth spiked after the pandemic.
Mr Thomas said the power to uprate pensions sits within Schedule 4E of the Social Security Administration Act 1992 as applied to the island, which requires Treasury to consider earnings, prices, the economic situation and the impact on the National Insurance Fund.
He confirmed that Treasury has not sought any legal advice on the application of the triple lock since 2021, saying the Department is satisfied it has acted within the law and in line with its obligations.
The full written answer can be found here.
