The government has refused to commit to honouring the triple lock on pensions ahead of the publication of its medium term fiscal plan, now due on 17 November.
Last week the then Prime Minister Liz Truss pledged to update the state pension in line with inflation, as per the Conservative’s manifesto pledge. If honoured this will mean pensioners can look forward to a double digit increase next April.
But the new Prime Minister Rishi Sunak, and chancellor Jeremy Hunt have refused endorse Truss’s pledge, and said a decision on this issue will be announced in the autumn statement.
Aegon pensions director Steven Cameron says: “The triple lock u-turns continue, with state pensioners now being told the government won’t make any commitments ahead of the autumn statement. This comes after previous Prime Minister Liz Truss committed to honouring it the day before resigning.
“The eventual outcome after so many twists and turns is too tough to call. On the one hand, Sunak has said he is seeking to deliver confidence and security, but further uncertainty over the triple lock offers neither to state pensioners. He has also said he’ll honour manifesto commitments, which included the triple lock, although the earnings component was suspended last April.
“On the other hand, no-one doubts the hugely difficult challenges the government faces in balancing the books and today’s state pensions are paid from the National Insurance collected from today’s workers, not from some huge accumulated pot. Those pensioners heavily or totally reliant on the state pension are most at risk here, highlighting the benefits to today’s workers of making the most of workplace pensions.”
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