LONDON (Parliament Politics Magazine) – Therese Coffey has pledged to keep the triple lock on pensions in place for the rest of the Parliament.
During a Labour backbench business debate on the effect of the cost of living crisis on retirees, the labour and pensions secretary made the pledge.
The news comes under 48 hours before Chancellor Rishi Sunak delivers his spring statement to MPs in the House of Commons.
The pensions triple lock policy determines how much the state pension will increase each year.
Every year, the state pension is scheduled to rise in line with the highest CPI inflation, average wage growth, or 2.5 percent.
Boris Johnson’s Conservatives pledged to retain the triple lock in place for the rest of the current Parliament in their 2019 platform.
However, the strategy was postponed in September due to concerns that the pandemic might result in an unaffordable increase the following year.
The transition of many individuals from furlough to full pay resulted in a significant increase in average salaries.
Inflation could reach an all-time high of 8.3%.
According to the Resolution Foundation, inflation could reach an all-time high of 8.3 percent next month, implying a considerable increase in pension payouts.
As a result, there was concern that the policy would be put on hold for another year.
Ms Coffey, addressing in the Commons ahead of the spring statement, underlined that the pensions triple lock will be honoured for the rest of the Parliament.
Jonathan Ashworth, the Labour Party’s work and pensions spokesperson, questioned the work and pensions secretary on the idea.
Pensioner poverty is rising, costs are rising, and this year’s state pension will be cut by nearly £300 in real terms, he stated.
“The Conservatives are failing to provide them with the retirement security they need. The basic truth is that retirees cannot trust the Tories.
He went on to say: “Will the secretary of state rule out breaking the triple lock for the second year in a row, as she was asked earlier? At the dispatch box, she didn’t give that assurance.”
Labour is investigating minister for the rising cost of living.
“The honourable gentleman asked many questions, and I did address at least one of his queries before,” the work and pensions secretary said when asked if the triple lock would be honoured for the duration of this Parliament. ” But the answer is yes, I do intend to keep that promise.”
Downing Street earlier today stated it can’t anticipate future inflation but insisted the pensions triple lock guarantee was “unchanged.”
“It does,” the PM’s official spokesman said when asked if the prior vow to bring back the triple lock for the duration of Parliament still stands. “We made it clear that this was only a temporary suspension.”
“I can’t forecast what inflationary pressure will be, and no one can, but we haven’t changed our commitment.”
The announcement comes as Mr Sunak prepares to make his spring statement on Wednesday, under pressure to address Britain’s cost-of-living crisis.
