Labour To Keep Pensions Triple Lock Until 2025

18 April 2017

one lock.jpg The Labour Party has indicated that if it was to gain power in the next election, it would pledge to keep the pensions 'triple lock' for at least another eight years. Introduced in 2010 by Conservative Chancellor of the Exchequer George Osborne, the triple lock guarantees pensioners an annual increase in state payout in line with inflation, wages or 2.5 percent, whichever is highest.

Speaking about the pledge, John McDonnell, the shadow chancellor said: "It's a national scandal that pensioner poverty is rising and the Tories are refusing to commit to keeping the triple-lock or compensate women worst affected by the speeding up in the state pension age."

Labour's pledge comes however as more and more pensions experts and Tory MP's are calling for the triple lock to be scrapped. Steve Webb, the Liberal Democrat former pensions minister who was one of the creators of the triple lock has now said that there is a "growing consensus" that it should be scrapped:

"There is a growing consensus. But a consensus is not always well-informed. The triple lock costs almost nothing if inflation starts to pick up a bit, and in that case getting rid of it would save next to nothing."

One of those Tory MP's speaking out against the triple lock and the Labour Party's pledge to keep it is Kelly Tolhurst MP who says that such a pledge could "crash" the economy.

"Labour's economic mismanagement hit older people hard when they were in government, and Jeremy Corbyn and John McDonnell's reckless plans would do the same all over again. Our careful management of the economy changes to help people save more for their retirement, and protections for pensioner benefits and the state pension are all helping people have dignity and security in retirement."

Former pensions minister Baroness Ros Altmann is another Tory calling for the triple lock to be scrapped:

"Guaranteeing a 2.5 percent increase makes no economic or social sense and it will end up costing billions. It's also a political construct that purports to offer great protection while increasingly disadvantaging the oldest and poorest pensioners."

When asked for a comment, a Department for Work and Pensions spokesman said: "The triple lock has protected the incomes of millions of pensioners and we are committed to it for the duration of this Parliament."

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