New alarm on pensions triple lock

JEREMY Hunt reignited fears over the state pension triple lock after refusing to rule out breaking a Tory pledge that protects millions of retirees.

When asked to reaffirm the commitment, the Chancellor said yesterday he would not make “any commitments to individual policies”.

The triple lock means state pensions rise each April in line with the highest of the previous September’s inflation rate, wage growth or 2.5 per cent.

The Conservatives backed the policy in their 2019 manifesto. But then chancellor Rishi Sunak broke it last September, after furlough and redundancies during Covid caused a freak jump in wage figures.

The state pension rose by only 3.1 per cent in April, based on last September’s inflation figure. Under the triple lock, it would have risen by 8.1 per cent, September’s wage growth.

Dismayed

Prime Minister Liz Truss promised to reinstate the protection during her leadership campaign.

Pensioners are currently on track to receive a record pay increase, due to historically high inflation.

If September’s inflation figure, published tomorrow, remains at 9.9 per cent, the new state pension will rise by £18.35 a week from £185.15 to £203.50 – equivalent to £954 per year.

The basic weekly pension, paid to those reaching the state age before 2016, would go from £141.85 to £155.90.

Dennis Reed, of the Silver Voices campaign group, said older people would be “absolutely dismayed” if the triple lock promises were ditched

Consumer campaigner Martin Lewis said: “They need to get rid of this debate right now and say pensions and benefits will rise with inflation.”