19 October 2022
If you are covering Prime Minister’s Questions and PM Liz Truss saying she is “protecting the triple lock on pensions”, please see the following comment from Jon Greer, head of retirement policy at Quilter:
“The government appear to be struggling to have a committed stance on the triple lock uprate in pensions, with Liz Truss now claiming pensions will rise by inflation. Given the sums involved it is ripe for the chopping block for a Chancellor who has made it clear that spending cuts are going to be required if we are to balance the books.
“Clearly this isn’t palatable for Liz Truss and she will be acutely aware of the political consequences this has for a Conservative Party that has traditionally relied upon the older vote. There are fears though that by sticking with the triple lock and raising the state pension in line with inflation, further intergenerational inequality will be created. Inflation is now running at almost double the earnings growth of working people, and during a cost of living crisis this will have a considerable impact on the finances of those people who are already struggling. That said, there are also a vast number of pensioners facing some difficult decisions this winter and have no choice but to be beholden to decisions made by the state, whereas working people can more easily influence their own earnings. Many pensioners need and will welcome a rise by inflation, provided the policy is not brought back into scope for cutting.
“What is clear is that the triple lock does not work for everyone, and perhaps it may be time to assess whether there is a fairer way to raise the state pension while preventing more people slipping into the poverty net and having to choose between heating or eating. The intransigence on suggested changes to the pension uprating mechanism, such as those put forward by the Work and Pensions select committee to replace the triple lock with an earnings link with allowance for periods of high inflation – some six years ago now – has exacerbated this political headache.”
