Tory fears as PM mulls watering down state pensions triple lock

Tories warn Rishi Sunak is making a ‘mistake’ that could be ‘electoral suicide’ as PM mulls watering down state pension triple lock to save £600m

Rishi Sunak is facing a Tory backlash today after it emerged he is mulling watering down the state pensions triple lock.

Senior MPs warned the PM that suppressing an anticipated rise would be a ‘mistake’ and could be ‘electoral suicide’.

Under the mechanism, pensions are due to go up in April by the highest out of average earnings, inflation or 2.5 per cent.

The total pay number was revealed by the Office for National Statistics (ONS) yesterday as 8.5 per cent, with the CPI metric expected to be lower.

Implementing that increase would mean a full basic state pension going from £156.20 per week to £169.50.

A full new state pension – typically offered to those who reached state pension age since April 2016 – would rise from £203.85 per week to £221.20.

However, Work and Pensions Secretary Mel Stride suggested ministers may strip out the value of bonuses – cutting the potential state pension rise to 7.8 per cent and saving the Treasury an estimated £600million.

A full new state pension – typically offered to those who reached state pension age after April 2016 – could rise from £203.85 per week to £221.20 next year

Work and Pensions Secretary Mel Stride suggested retirees might not get the expected 8.5 per cent rise next year

Speaking on LBC last night, former Cabinet minister Robert Buckland said the move would be a ‘mistake’

The move would hit 12.5million older people. It would mean that someone on the new state pension would get an extra £15.90 a week next year instead of £17.33, costing them £74 a year.

Mr Stride stressed the need for any increases to take into account ‘affordability and the position of the economy’.

Speaking on LBC last night, former Cabinet minister Robert Buckland said the move would be a ‘mistake’.

He said there was no point ‘tinkering round the edges’ to save £600million when there were ‘more fundamental questions’ on the tax base – such as how to replace business rates and duty on fossil fuels. 

‘Removing the lock now is a mistake. One of the great successes we have had is to actually alleviate pensioner poverty by having the triple lock take its course,’ he said. 

Campaigners accused the Government of ‘sleight of hand’. 

Dennis Reed, of the campaign group Silver Voices, said: ‘Pensioners would take a very dim view indeed if the Government starts watering down the triple lock in this way. The Government says it is committed to the triple lock – people don’t expect this sort of sleight of hand to reduce it.

‘The triple lock is a symbol of the way a society treats its older people. Any move to pare it back will be seen as slippery slope towards getting rid of it altogether.’

Former Tory pensions minister Ros Altmann said: ‘I would most strongly advise the Government against any tinkering with the earnings inflation indices this year, in an attempt to shave a bit off state pensions in the teeth of a cost of living crisis.

‘Don’t forget, just as inflation was taking off to more than 10 per cent, the Government decided pensioners would only get a 3.1 per cent rise.’

One minister warned ditching the triple lock in the run-up to an election year would be ‘electoral suicide’, adding: ‘I have no idea why anyone is even suggesting this now.’

Mr Stride told BBC Radio 4’s World at One that ministers could strip out the value of bonuses but said he did not want to ‘get into the weeds’ of a decision that will be taken later this autumn.

He added: ‘We have known for a long time that in the very, very long term you are absolutely right, it is not sustainable.

‘But of course what I am dealing with is now and where we stand at the moment is we remain committed to the triple lock and that is the path that we will be taking. As to the future and after future general elections and so on and so forth, who knows. But that is the position we are in at present.’

Rishi Sunak has not ruled out downgrading the increase in the state pension  

The IFS think-tank has pointed out that triple-lock means the value of the state pension is set to rise sharply compared to average wages

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