Pensions triple lock at risk as Tories and Labour won't make election guarantee

03 December 2023 , 22:00

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Doubts have been cast over the future of the pensions triple lock, which governs how much payments rise each year (Image: Getty Images)

The Tories and Labour have both refused to guarantee the pensions triple lock will continue after the next election.

Neither Rishi Sunak or Keir Starmer said they could promise the protection - which has been branded "unsustainable" by the Tory work and pensions chief - will remain in place.

Currently the state pension rises each year in line with the highest out of 2.5%, wage rises or inflation. After weeks of speculation the Government finally decided to honour it, meaning payments will go up 8.5% from April next year.

But there are questions over the long-term future of the triple lock. Asked on the flight to the COP28 climate change summit whether it would be in the next manifesto, Mr Sunak said: “So, definitely not going to start writing the manifesto on the plane, as fun as that would be.

“We are the Government that has introduced the triple lock and delivered the triple lock and it is why, right now, pensions are, depending on how you look at it, £800 or £900 bigger than they otherwise would have been. And we consistently support pensioners."

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He said it is "right" that pensioners will receive an extra £300 alongside their winter fuel payment to help with energy bills this winter. The PM said: "We have also just delivered the triple lock in full for this coming year which the Chancellor announced in the Autumn statement. There was some scepticism that that might not happen but again it is just a signal of our commitment to look after our pensioners who have put a lot into our country."

Asked the same question by reporters at the summit, Mr Starmer also refused to promise the triple lock would be in the Labour manifesto. He said: "This government made the commitment on the triple lock and it's for this government to keep to its commitment.

"We will set out our position as we get to the election, there is obviously at least one more fiscal event to be had yet, but we will set that out fully before we get to the election."

In September Work and Pensions Secretary Mel Stride said he'd known "for a long time" that the triple lock is "not sustainable". He said: "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. But as to the future and after future general elections and so on and so forth, who knows."

From April the state pension for men born after April 1951 and women born after April 1953 shoot up £901 from £10,600 to £11,501. For those born before this, the full basic state pension will go up £690 from £8,122 to £8,812. The rises will take effect in April next year.

Meanwhile Mr Sunak refused to be drawn on when he will call an election - which by law must happen by January 2025. He said: "Again, not going to get into election timing now alongside the manifesto or the next Budget."

He said: "Day in day out, I am wanting to make a difference on the things that matter to people. Nothing is going to divert me from that course, no matter how tough it gets, no matter the criticism I get, wherever the polls are, day in day out I am making a difference to people on the things that matter."

He also repeated his desire to cut taxes, saying the economy has "turned a corner". Asked about measures like stamp duty and inheritance tax cuts Mr Sunak said: "I would never comment on specific taxes.

"But what I will just say, though, is we have turned a corner, right? We have got inflation down, as I said we would, we have grown the economy and we are now focused on controlling spending and controlling welfare so we can cut taxes."

He continued: "We want to grow the economy, we want to reward people’s hard work and aspirations and cut their taxes responsibly. That is the direction of travel from this Government."