Andy Burnham, set to become Prime Minister on Monday, has confirmed he will retain the triple lock policy, which is projected to increase state pensions by up to £2,100 over the course of this Parliament. The commitment, championed by Labour cabinet members, aims to support Department for Work and Pensions (DWP) claimants.
Triple Lock Details and Impact
The triple lock ensures the state pension rises annually by the highest of inflation, average earnings growth, or 2.5%. Minister for Pensions Torsten Bell stated: "In addition, our biggest ever Pension Credit take-up campaign and our Triple Lock commitment, which will see the State Pension increase by up to £2,100 over this Parliament, are ensuring pensioners get the support they need this winter."
Low-income pensioners can also apply for Pension Credit, worth on average £86 per week, which unlocks additional benefits such as housing cost assistance and free NHS dental treatment.
Pension Credit Take-Up Campaign
A DWP press release highlighted: "The Government’s biggest ever Pension Credit take-up campaign has seen thousands more pensioners claim the support they are entitled to. A new trial to boost take up in partnership with Age UK and Independent Age ran last year with letters sent to 2,000 pensioners identified as being the most likely to be eligible for Pension Credit but not currently claiming the benefit."
Bell added: "Right now is a good time to reform the private pensions system, and that's exactly what we're doing. It's not a good time to raise VAT when you've just been through a cost-of-living crisis and the Bank of England is trying to sustainably bring inflation to target."
Economic Context and Responses
Addressing questions on recent tax rises, Bell said: "I'm not hiding from the fact that there are consequences from the change in national insurance, the chancellor has been very clear about that. Making sure we rescue our public services is a pro-growth choice."
