Andy Burnham has signalled he will resist calls to scrap the state pension triple lock, despite pressure from economic advisors including former Goldman Sachs economist Lord Jim O’Neill. The newly elected Labour MP for Makerfield insists the manifesto commitment must stand, warning that abandoning it would be 'very damaging'.
Burnham Defies O'Neill's Advice on Triple Lock
According to The Times, Lord O’Neill has been 'trying to convince' Burnham that ending the triple lock could boost bond markets and improve national finances. However, Burnham has publicly committed to honouring Labour’s manifesto pledge to maintain the policy throughout this Parliament, effectively until 2029.
Speaking to The i Paper, Burnham stated: 'The manifesto commitment holds' on the triple lock, adding that to 'tear up the manifesto commitments on the triple lock' would be 'a very damaging thing to do'.
Former Pensions Minister Warns of Electoral Backlash
Steve Webb, who served as pensions minister in the coalition government, cautioned that while ministers might 'love to' scrap the triple lock, doing so could backfire. 'There are perfectly good fairness arguments, and we should do more for young people,' Webb said. 'But from a crude electoral perspective, there aren’t many votes in taking money away from pensions and spending on young people.'
O'Neill Calls for Credible Fiscal Rules
Lord O’Neill, speaking before Burnham returned to parliament, argued that the former mayor of Greater Manchester would need 'very clear and credible fiscal rules' to reassure markets and prevent a surge in government borrowing costs. 'Despite its inability to get certain things done, the gilt market demonstrates that they respect the fiscal rules that Rachel Reeves presides over,' O’Neill said.
'So I think Andy would actually have to strengthen those in order for him to convince the markets that it’s not going to be a further big problem for stability in UK markets.' He added: 'I think the gilt market is telling us that whoever tries to lead this country going forward has got to focus on the four or five very big clear things that this country has got to do' – including 'getting rid of the triple lock'.
