The state pension triple lock should be axed according to senior Conservative Iain Duncan Smith, who urged Tory leader Kemi Bandenoch to consider scrapping the policy. Sir Iain, who was responsible for pensions in a former role as Work and Pensions Secretary, said it was time to “move away” from the triple lock.
He warned that the policy gives money to pensions and takes it away from working people. But the suggestion will spark fury among campaigners who say the triple lock is vital in order to prevent even more of the nation’s elderly falling into poverty. Currently, the triple lock ensures the state pension rises each year by the rate of inflation, in line with average earnings or by 2.5%, whichever is higher.
The aim is to ensure that pensioner incomes keep up with the cost of living. The state pension is currently £11,502.40 a year for many people, although some pensioners get less.
Sir Iain was questioned on BBC Radio’s FiveLive by presenter Matt Chorley, who asked: “What about the pension triple lock? The world has changed a lot since it was introduced. Is that still sustainable?”
Sir Iain said: “That was the point I was always trying to make to them. I thought the triple lock in the short term was okay, but when I looked at the figures in the flow, which are astonishing, the scale that you are then pushing through the triple lock takes them well away from working people.
“In other words, it puts an extra burden on taxpayers in the working system. So, I always felt you should move them maybe to a double lock or something rather than a triple lock all the way through.
“But the government didn’t want to do that. As I say, since then you’ve had this terrible energy crisis so now you need more support.”
Mr Chorley asked: “Your advice to Kemi Badenoch. Should she look again at the triple lock?”
Sir Iain said: “I think she should. But I think you know looking at politics right now I don’t see any party coming forward with a view that says they’re going to take it off. The trouble is it really does put pressure on costs. And you’ll see that the biggest cost of all to welfare is pensioners.”
Dennis Reed, Director of campaigners Silver Voices, said it was essential to protect the triple lock in full. He said: “We object most strongly to any fiddling with the triple lock. It is essential to stop older people falling into poverty. The prices for essential household items have gone through the roof over the past few years. That triple lock is there as a basic safeguard and it needs to be kept intact.
“All the political parties, including Iain Duncan Smith’s own party, were committed to the triple lock for the whole of this Parliament. His stirring the pot now is unnecessary and mischievous.”
The UK’s total benefits bill is £313.6 billion. This includes £150.7 for pensioners, including pension credit and other benefits for older peopel as well as the pension itself.
Spending on disability benefits, which includes disability living allowance and personal independent payments, is forecast to rise from £36.3 billion in 2023/24 (accounting for 12% of the total welfare budget) to £59.4 billion in 2029/30 (16%).
Government expenditure on all health and disability benefits across all age groups, including pensioners, is forecast to rise from £67.4 billion in 2023/24 to £100.7 billion by 2029/30, a jump of 56%.
Supporters of the triple lock point out that stereotypes about rich pensioners are not true and nearly 1 million people aged over 66 in the UK are living in deprivation, according to government statistics, the highest number since comparable records began.
