Threat comes as the Government's ‘fiscal statement’ is delayed to November 17
Source - Daily Telegraph 26/10/22
The state pension triple lock is under threat again after new Prime Minister Rishi Sunak refused to commit to the policy that protects millions of retirees from inflation.
Under the triple lock, which the Conservative Party committed to in its 2019 manifesto and Liz Truss promised to maintain, the state pension is increased every April in line with the highest of either inflation, wage growth or 2.5pc.
But when pressed on the issue today, the Prime Minister's spokesman said: “That is something that is going to be wrapped up into the fiscal statement, we wouldn't comment ahead of any fiscal statements or budgets.
“What I can say is he has shown through his record as Chancellor that he will do what's right and compassionate for the most vulnerable.”
It comes as the Government's “fiscal statement” was delayed from next Monday to November 17.
If the Government honours its triple lock promise, it means that pensioners will receive the biggest pay rise on record next April, with a 10.1pc state pension boost estimated to cost the Treasury £11bn.
Steven Cameron, of the pensions provider Aegon, said: “The Government say that they want to create stability and confidence but they are not doing so for pensioners.
“Mr Sunak said that he would honour manifesto commitments, but the triple lock is an extremely expensive policy and is being paid for by the working population. I fully expect that in the next manifesto there will be a move away from the triple lock. The real question now is how long can it last.”
The Liberal Democrats also accused Rishi Sunak of an “endless hokey cokey” over the policy.
The party's work and pensions spokesman Wendy Chamberlain said: “Rishi Sunak stood on the steps of Downing Street yesterday pledging to rebuild trust and stick to the promises made in the Conservative manifesto.
“But already he's preparing to tear up his party's promise on the pensions triple lock while slashing welfare support for the most vulnerable. This endless hokey cokey from the Conservatives is leaving pensioners and struggling families in a desperate limbo.”
Pensioners were denied £13,000 over the course of their retirement after Mr Sunak ditched the policy last year as Chancellor. The state pension rose by 3.1pc in April 2022, based on September 2021's inflation figure. Had the Government upheld the triple lock, it would have risen by 8.1pc, September's wage growth figure, but Mr Sunak argued the pandemic had distorted the data.
If the policy is maintained, state pensioners will get the biggest pay rise on record next April. The weekly new state pension should rise to £203.85 from April 2023, equivalent to £10,600.20 a year, according to calculations from the wealth manager Quilter Cheviot. This would be £972 more than currently and the first time the state pension has exceeded £10,000 per year.
The basic state pension, paid to those who reached the state pension age before 2016, will increase to £156.20 a week or £8,122,40 annually.
If the Government chooses to increase the benefit by the wage growth figure of 5.5pc instead, the new state pension would rise to £195.35 a week or £10,158.20 annually. The basic state pension would rise to £149.65 a week or £7,781.80 annually.
Half of pensioners rely on the state-paid benefit as their main source of income, according to the pension provider Royal London.
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