BCC Calls for State Pension Changes to Fund Youth Jobs Before UK Budget
British Chambers of Commerce Urges Pension Reform and Youth Employment Funding
LONDON, Sept 7 (Reuters) - The British Chambers of Commerce has urged finance minister John Healey to replace Britain's pension so-called "triple lock" with inflation-linked increases ahead of his first budget, saying the savings could help boost youth employment and growth.
Understanding the State Pension Triple Lock
• The triple lock guarantees that the state pension rises each year by whichever is highest among inflation, wage growth or 2.5%.
Proposed Changes to Pension Increases
• The British Chambers of Commerce said in a submission to the government published on Sunday that replacing it with annual increases linked to consumer price inflation could free up about £3.3 billion ($4.5 billion) over two years.
Redirecting Savings to Support Youth Employment
• The business lobby group said the savings should be used to cover some of the cost of extending a zero rate of employer National Insurance contributions to workers aged 21 to 24.
Additional Recommendations from the BCC
• The BCC also called for lower business energy costs, business rates relief and additional export support, saying weak confidence and rising costs were holding back investment.
Timing and Context of the Recommendations
• The group's recommendations come ahead of Healey's first budget next month, and his first major speech as finance minister on Monday.
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(Reporting by Sam Tabahriti)
