Call to scrap the triple lock on pensions
Duncan Smith says money should help the working
A FORMER Conservative leader has called on Prime Minister Theresa May to scrap the “triple lock” on the state pension because of rising costs.
Iain Duncan Smith, who quit as work and pensions secretary in David Cameron’s Cabinet earlier this year in protest at another raid on the social security budget, said that the money would be better used to take the “pressure off” those who are still working.
He also warned that the policy was in danger of creating friction between the generations.
Former chancellor George Osborne came under fire in the run up to last year’s General Election from critics of his pledge to cut £12 billion from the welfare bill.
But Mr Duncan Smith said that the triple lock, which guarantees that the state pension will rise by the higher of average earnings, inflation or 2.5 per cent, had cost £18bn this year.
Referring to 2010, when his party came into government, he told the BBC’s Sunday Politics programme: “We had a commitment as a Conservative Party in our manifesto to get pensions back on to earnings. That was absolutely right. With the coalition, that was moved to a triple lock which guaranteed a minimum of two and a half per cent.”
Mr Duncan Smith continued: “I’m in favour now of getting this back to earnings again. And allowing it to rise at a reasonable level.” He said that in his previous role as Work and Pensions Secretary he had been “under pressure... scratching around trying to take more money out of working age areas, when in actual fact the budget was almost out of control on the pensions side”.
Mr Duncan Smith added: “I’m in favour of helping pensioners but I think that now they’re up to a reasonable level, at a steady rate that can be afforded by government, that takes the pressure off working age people who have to pay for that.”
He also said that scrapping the triple lock would “help with the inter-generational fairness argument, which I feel is very strong”.
A senior adviser to Mrs May has previously suggested that the triple lock should be cut to avoid hitting working families.
Nick Timothy, the Prime Minister’s joint chief of staff, said that tackling the triple lock was the “obvious alternative”. Separately, former pensions minister Baroness Altmann has suggested a double lock instead, where the state pension increases by the higher of the rise in average earnings and inflation.
In August, the UK Government rejected calls to scrap the triple lock, suggesting that it would remain in place until at least 2020.
At the Conservative Party conference in Birmingham earlier this month, Work and Pensions Secretary Damian Green said his party had a duty to look after the 13 million people who receive the state pension.
He added: “That means protecting pensioner benefits and uprating the state pension by the triple lock, because our parents and grandparents deserve to have a secure retirement.”
Mr Duncan Smith has now reiterated his call for cuts in universal credit to be reversed.
The policy is designed to allow workers on benefits to keep more of the money they earn, but Mr Osborne slashed the rates as part of his bid to bring down the welfare bill.
Mr Duncan Smith said the cuts should be reversed by delaying plans to raise the point at which people start paying tax to £12,500 a year.
He added: “I don’t believe you need to go through with that continuing raise of the tax threshold. That alone costs – of course it’s dependent on inflation – but give or take £4bn every time.” MUSIC man Roddy MacLeod belts out a tune to celebrate winning the most prestigious competition in the piping world.
Mr MacLeod has been crowned the 2016 Glenfiddich Piping Champion. He triumphed against the world’s most highly acclaimed pipers to claim the title at Blair Castle, Perthshire.
Mr MacLeod said: “Taking part is always a highlight of the year for whoever is lucky enough to earn their place.
“It’s always an honour to play and compete alongside great talent.” Picture: Derek Maxwell