The Department for Work and Pensions (DWP) is facing pressure to abandon a proposed state pension change that could cost claimants £2,100. A leading charity has strongly criticised the Tony Blair Institute for recommending the end of the Triple Lock policy.
Charity Condemns Thinktank Report
The bombshell report from the Tony Blair Institute, led by former Labour Prime Minister Sir Tony Blair, was released on Friday. It calls for scrapping the Triple Lock, abolishing Pension Credit, and raising the state pension age. However, Age UK has fiercely opposed these suggestions.
Caroline Abrahams, Charity Director at Age UK, said: "Age UK firmly believes that the Triple Lock should be retained into the next Parliament." She emphasised that the policy has helped rebuild the value of the State Pension, improving living standards for some of the poorest pensioners.
Financial Impact on Pensioners
The Labour Party stated that the Triple Lock commitment means pensioners' incomes will rise by up to £2,100 over this parliament. Ms Abrahams added: "Today, we continue to hear from older people who are struggling financially, and the extra money the Triple Lock delivers makes a meaningful difference to many lives."
New polling reveals that 3 in 10 pensioners are struggling financially, even before the worrying rise in energy prices. Ms Abrahams called for a national debate to determine the purpose and appropriate value of the State Pension, noting it is currently set too low to provide a decent standard of living.
Reliance on State Pension
Many people are unaware that the State Pension makes up a substantial proportion of most older people's retirement income. For a minority, it is all they have coming in. One in six single pensioners is fully reliant on the State Pension and any benefits they may be entitled to.
This year, the Triple Lock was worth £575 for new, full state pensioners. Ms Abrahams highlighted that while some older people receive more than the £12,548 full new State Pension, many more get considerably less. Indeed, 6 in 10 pensioners receive the old State Pension.
