Andy Burnham is poised to signal the end of the pensions triple lock in a speech at the Labour Party’s conference on Tuesday, the Express understands. The Prime Minister is to tell his party the policy isn’t working as it is currently set up and Labour’s next manifesto should include a pledge to review it.
The State Pension increases in April each year based on the triple lock, which has been in place since 2011. It means the increase will match the highest of Consumer Price Index inflation, the average wage increase from May to July of the previous year, or 2.5%.
Senior Government sources have told the Telegraph that the PM will outline his wish to review the triple lock, but stop short of pledging to scrap it entirely, the publication reports.
The possibility of the review has divided senior Labour figures, with Sharon Graham, the General Secretary of the Unite union, telling The Times: “I think it would be almost electoral suicide. Morally, I just don’t think it’s the right thing.”
Defence Secretary Wes Streeting said the triple lock will remain in place until at least the next election as the Labour Party stands by its manifesto pledges from 2024.
But he also refused to say whether it would be included in Labour’s next manifesto.
Darren Jones, who left the Cabinet when Mr Burnham swept into No 10 earlier this year, has cast doubt over the future of the triple lock.
He told the BBC: “Maybe, you know, the triple lock is very expensive in the years ahead and it’s a benefit to older people – if you’re reallocating money to help older people in the social care system, maybe there’s some reform that could be made there.”
Mr Jones said scrapping the triple lock was an option that the Government should consider alongside others.
The triple lock has been credited with rebuilding the value of the State Pension relative to prices and earnings, but concerns have been raised about its long term sustainability as growth in government spending on the State Pension soars.
Charlotte Kennedy, a chartered financial planner at Rathbones, said whether the triple lock survives in its current form or is eventually reformed, people need greater clarity about the future direction of retirement policy so they can plan with confidence.
Maike Currie, Vice President of Personal Finance at PensionBee, insisted any decision needs to be done well in advance.
She said: “The triple lock has done an important job rebuilding the value of the State Pension, but it was designed as a catch-up mechanism, not necessarily a forever policy.
“Any reform needs to be clearly signalled well in advance. People plan for retirement decades ahead, so you can’t move the goalposts overnight.”
