Main parties ‘safety-first’ on pensions

THE Conservatives are likely to drop axing the triple lock on the state pension from their manifesto, former pensions minister Stevewebb says.

Campaigning for the General Election started last week and manifestos from the parties could come as early as this week.

Webb, who is director of policy at insurer Royal London, said the main political parties are likely to take a “safety-first” approach to pensions, given how close the vote is likely to be.

At the last election, the Tories expected a comfortable victory and as a result their manifesto included “tough choices” such as abolishing the triple lock on state pension increases and implementing the means-testing of winter fuel payments. Webb, who was a minister in the coalition government, said that if said policies make it into the 2019 manifesto, the Tories must be confident of winning.

For Labour, he said that worsening life expectancy rates since 2017 mean it will reiterate its opposition to increases in the state pension age.

“The 2017 Conservative manifesto did contain tough measures. Whether or not these are repeated in 2019 will be a key indicator of the Conservatives’ electoral confidence,” he said.

“Recent data on how long we are all living is likely to lead to stronger opposition to rapid state pension age increases, and the opposition parties are likely to repeat pledges to support women affected by rapid state pension age increases.”

Webb said the parties are unlikely to tackle complex issues such as pensions tax relief.