The Labour Party will be considering a proposal for the cost-of-living allowance to be calculated twice a year rather than annually.

The idea was floated by the General Workers’ Union in a document for political parties to consider for their electoral manifestos and which it presented to Labour last week.

But the future of the COLA mechanism is in the balance as the EU is insisting this should be pegged to productivity rather than just inflation.

The GWU has always defended the adjustment, although it admits the mechanism needs reviewing. It is also requesting that the increases be non-taxable.

The union is also insisting that pensioners should receive a minimum of 60 per cent of the average national income to enable them to live a decent life.

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