Hunt expected to fund triple lock pension rise in full... ‘Anything less would be a betrayal’
JEREMY Hunt must increase the state pension by the full level of wage growth in today’s Autumn Statement, campaigners have demanded.
Experts and MPs are confident the Chancellor will announce the payments will go up by 8.5% in line with earnings next April – despite discussions about a lower rate.
The uncertainty over the triple lock pension rise has been “hugely unsettling” for many older people who are struggling to make ends meet, charity groups said.
Lord Foulkes, co-chair of the AllParty Parliamentary Group for Older People, said: “Older people will study the Chancellor’s statement with great care to make sure that there is no sleight of hand or trickery on the pension triple lock.
“This time it must be the full level of wage increase that is used to increase the pension. Anything less would be a betrayal.
“The whole purpose of the triple lock is to ratchet up the basic pension from the paltry level in the UK so we start giving older people an income that is nearer our neighbours and enables them to heat their homes and feed themselves without worry.”
One MP said they “expect” Mr
‘We hope Government will draw a line under all the uncertainty’
Hunt to pay the higher rate, while an industry expert said they believed better public finances than forecast meant it was likely to go ahead in full.
Age UK charity director Caroline Abrahams said: “The prolonged speculation about what may or may not happen with the triple lock in today’s Autumn Statement has been hugely unsettling for the many millions who depend on their state pension, and who are struggling to make ends meet.
“We hope that the Government will draw a line under all the uncertainty, keep its promise to older people and honour their triple lock commitment next year in full.”
Silver Voices director Dennis Reed said: “It would be political madness for the Conservatives to undermine the triple lock and it would infuriate their own backbenchers.
“There is absolutely nothing to be gained from breaking a manifesto promise so close to a general election, and thousands of undecided votes to lose. If the Autumn Statement turns out to be all about tax cuts, any savings made by robbing pensioners will immediately be contrasted with tax gains made by the better off.
“A public relations disaster, with ugly consequences for struggling older people, looms if our warnings are not heeded.”
Jan Shortt, general secretary of the National Pensioners Convention, said: “There is much said about its affordability and whether it is the right mechanism. The NPC wants to see an open and transparent discussion on the future of the state pension and the triple lock indexing method to ensure that all pensioners, now and in the future, are able to live with dignity in their later years. It is imperative that the Chancellor does not use his statement to offer incentives to the wealthy at the expense of pensioners, disabled people, families and others struggling to cope with the energy crisis and a variety of increased household bills.” Nearly 280,000 people signed our petition with Silver Voices calling for the Government to honour the full increase. Our crusade came after it emerged officials were planning to strip out public sector bonuses to reduce the figure to 7.8%, which would leave recipients £75 a year worse off than expected. It would save the Treasury around £900million next year.
An 8.5% rise in the full new state pension would take it from around £204 per week to £221. A smaller rise of 7.8% would instead take it to around £220.
The triple lock is a commitment to increase state pensions by whichever is highest out of average earnings growth, CPI inflation or 2.5%.
Analysis of official figures found around 1.2 million households are “mainly reliant” on the state pension for their retirement income. This means at least three-quarters of their cash comes from the payment.
Single pensioners account for most of the households.And three times as
many women (580,000) as men (180,000) rely on it primarily.
The Pensions and Lifetime Savings Association calculated that the annual minimum income for a single pensioner should be £12,800 a year, but the new state pension is only £10,600.
Stephen Lowe, from retirement specialists Just Group, said: “The widespread financial fragility and state income dependence highlighted in our research places even greater pressure on the Chancellor to confirm the triple lock in Wednesday’s Autumn Statement.
“Maintaining the triple lock could be a lifeline for the vast number of pensioners whose livelihoods depend on the state pension keeping up with costs of living.”