No case for ‘Indefinite’ pension triple lock suggest minister
The minister who first signed off on the pensions triple lock has suggested he thinks there is not a case for keeping the measure “indefinitely”.
Former Liberal Democrat MP Sir Steve Webb, who served as pensions minister in the coalition government, thinks there is still a case for keeping it now, and there is still “a pretty low state pension” in the UK.
But also suggested that the triple-lock rule made sure that every year “I didn’t have to go and beg for George Osborne to give me a bit more money”.
The triple lock
Conservative leader Kemi Badenoch has come under fire after suggesting she would look at means testing when asked about the future of the triple lock, which is aimed at preventing the state pension’s worth from being eaten away by inflation and other cost pressures.
The triple lock means that the state pension rises each year by whichever is highest out of 2.5%, inflation, or earnings.
Speaking to BBC Radio 4’s Today programme on Saturday, Sir Steve was asked whether he thought there was an economic case for keeping the measure.
He said: “I think there is. Not indefinitely.”
He said the formula was introduced “after 30 years of decline”.
“It was a rule, a formula that made sure every year when I was a minister I didn’t have to go and beg for George Osborne to give me a bit more money for the pension because there was a rule,” he added.
Sir Steve went on: “When it reaches a decent level by all means switch it off, but we still have a pretty low state pension and pretty poor private pensions on top.”
He also said he thought means testing the state pension would be a “terrible idea in the British system”.
Comments
Conservative Party co-chairman Nigel Huddleston defended Ms Badenoch on Friday, but asked by Times Radio whether the UK can afford the triple lock, Mr Huddleston said: “Over the long term these are exactly the things we’re looking at, but the Conservative Party has a long and proud history of supporting pensioners, this is the whole point.
Downing Street said on Friday that Prime Minister Sir Keir Starmer is “committed both to the triple lock and the principle of people receiving a state pension based on the contribution they have made over their lifetime, regardless of wealth”.
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Whilst the triple lock is very good for pensioners with income less than the frozen taxable allowance but for everyone else it is taxed and that’s the way it should be. Pensioners should receive the same gross income from the state and then recoup from the wealthiest via taxation. This is far more cost effective and inclusive than means testing.
Then NI should also applied since this is just income tax in disguise.
And while we’re at it, remove the NI discount enjoyed by those on incomes over £50k.
Triple lock would not be necessary if the country was led in a more rational way. Inflation kills the value of people’s pensions. Those who don’t have index linking in their works or private pensions are falling well behind every time we get a surge like the dose inflicted on us by Truss. No doubt the Labour regime can see another wave coming and they want to duck their responsibilities. Tories will moan but privately they too want to duck out because they are well feather bedded by wealth and half tidy pensions. “F**k you Jack, I’m all right” seems… Read more »