Kwarteng insists pensions triple lock safe despite speculation
The "triple lock" guarantee for pensioners is "safe", a Cabinet minister said despite speculation the pledge could be weakened because of the soaring cost.
Business Secretary Kwasi Kwarteng said he believed the Government should keep to the promise made in the Tory election manifesto to retain the measure, which guarantees the state pension will increase in line with inflation, earnings or 2.5 per cent whichever is higher.
Rising wages could result in an increase far beyond the 2.5 per cent minimum, with the budget watchdog forecasting an extra £3 billion pensions bill.
The Office for Budget Responsibility (OBR) said earlier in July that pensioners could see their payouts rise by as much as 8 per cent from April 2022 due to the Government's triple-lock guarantee.
Chancellor Rishi Sunak did not rule out changes to the policy, acknowledging that concerns are "completely legitimate" and that any decision will be fair for "pensioners and for taxpayers", a view echoed by Boris Johnson.
But yesterday, the Business Secretary told LBC: "I think it is safe. I mean, I've always been of the view that we should stick to the words in the manifesto.
"Of course, things have happened, like Covid. Like the fact that we spent £350 billion in one year to support the economy. And I think any government, any group of politicians or civil servants will debate how we can raise the money.
"But as far as I am concerned, the triple lock is still here."