The Manx state pension is to rise in April by 4.1% in line with the UK triple lock after all.

It had been proposed that the triple lock be scrapped for pensioners who reached state retirement age after 2019.

Their pension was to have risen by 2.2% from April in line with CPI inflation as at September last year.

But following a House of Keys debate this week, in which MHKs voted unanimously to have a standalone vote on the state pension reforms, separate from the Budget vote, Treasury has said the triple lock will stay for now.

In a statement, it said: ‘The Treasury will propose that both the basic retirement pension and Manx state pension should be increased in line with the UK triple lock policy of 4.1% for the year 2025-26 in next week’s Budget.

‘The decision is in response to an extensive debate this week in the House of Keys on the future uprating of the Manx state pension.

‘Members requested greater public consultation on future proposed changes designed to ensure the long-term sustainability of the National Insurance Fund and protect the ability to provide for pensions today and in the future.’

Treasury Minister Dr Alex Allinson MHK said: ‘After listening to the debate it is clear that more time is needed to ensure there is consensus around the best way to secure our NI Fund and protect pensions in the future.

‘I will be working with Tynwald members over the coming months to establish a public consultation so all views can be heard and a sustainable policy agreed.’

The debate followed the publication of two reports which warn that, without intervention, the National Insurance Fund would be exhausted in just over 20 years’ time, by 2047.

A motion will be now be moved at April’s sitting of Tynwald to continue the debate on the National Insurance scheme.

The proposed changes would see the Isle of Man drop the triple-lock pension guarantee for those who reached state pension age after 2019.

Under a proposed Manx pension guarantee, their state pension will instead rise annually by a ‘double lock’ of either CPI inflation or 2%, whichever is higher.

Most pensioners will be unaffected as they retired before the introduction of the Manx state pension in 2019.

The UK’s triple lock policy increases pensions each year by whichever is the highest figure: 2.5%, CPI inflation or average earnings growth.

The Manx state pension is currently £241.50 a week and with the 4.1% increase in line with the triple lock will go up to £251.40 a week from April 7. This equates to an increase in annual income from £12,558 to £13,072 annually.

If it had gone up under the proposed double lock by 2.2% it would have risen to £246.75 a week or £12,831 annually.

The retirement pension for pre-2019 state pensioners is currently £169.50 a week and will increase by 4.1% to £176.45 a week. This equates to an increase in annual income from £8,814 to £9,175.