Andy Burnham has been urged to scrap a perk worth £2,100 for state pensioners when he becomes Labour Party Prime Minister. Mr Burnham's advisor Andy Haldane has slammed the Department for Work and Pensions (DWP) state pension triple lock.
Triple lock cost concerns
The Office for Budget Responsibility said the welfare mechanism – which determines the state pension must rise by whichever is highest out of inflation, wage growth or 2.5 per cent – had cost taxpayers three times more than originally expected and presented a threat to the sustainability of public finances.
Haldane doubled down on his criticism of the triple lock, arguing it was “fiscally unsustainable” and adding that “the fiscal arithmetic doesn’t lie”, during a chat with City A.M. in the wake of Mr Burnham's speech in Manchester on Monday.
Call for reform
Mr Haldane suggested that there was scope for reform of the policy under a Burnham premiership as the debate had “shifted” rapidly over two months. “I don’t know when the moment will come politically, I don’t know when the political will can be summoned, to tackle this, but I think the vast majority of people would say it does need tackling, and given our strained fiscal times,” Mr Haldane said. “Why not now?”
The Labour Chancellor Rachel Reeves has committed to keeping the Triple Lock for the remainder of this Parliament. The Government has already delivered above-inflation increases worth up to £395 in real terms over this Parliament. By its end, pensioners’ annual incomes are expected to rise by up to £2,100 – boosting financial security for millions.
Government defends pension policy
Speaking previously, Work and Pensions Secretary Pat McFadden said: "I know global shocks, and the effects they have on our living costs, will be increasing anxiety for many households. This government will always protect our pensioners, and that’s why we are raising the full rate of new State Pension by up to £575 this coming year."
Minister for Pensions Torsten Bell said: "After a lifetime of work and contribution, people deserve a decent retirement. Raising the State Pensions faster than prices, ensuring it is a pension they can rely on, is how we make that a reality for millions."
