State pensioners aged 67 to 77 could receive £1,071 a month under Labour Prime Minister Andy Burnham, who has pledged to maintain the state pension triple lock.
The full new state pension currently stands at £241.30 weekly for those reaching state pension age after April 6, 2016. Under the Department for Work and Pensions (DWP) triple lock, pensions must rise by whichever is highest of wage growth, inflation or a flat 2.5%.
Wage Growth Drives Increase
Wage growth topped the list this year at 4.8%, meaning pensions rose accordingly in April. Should the triple lock climb only by the statutory minimum of 2.5%, state pensioners on the new rate would receive an additional £313, pushing payments to £1,071 monthly.
The new state pension applies solely to those aged 67 to 77, with individuals born before 1951 remaining on the basic rate instead.
Manifesto Commitment Defended
Mr Burnham has described it as "important" to uphold the Labour manifesto pledge to preserve the triple lock on the state pension, reports Birmingham Live.
In an online Q and A, Reddit user Masam10 asked: "Is it time to abolish the triple lock? Or at least have that discussion?" The Makerfield MP responded: "I appreciate there's a lot of debate about this but it is important that the commitment in the manifesto stands."
Welfare Spending Under Scrutiny
Current projections indicate the government is spending roughly £1 billion daily on the escalating welfare bill. Official figures released yesterday by the Office for National Statistics – for a month which typically sees a surplus due to tax receipts – revealed that the government had borrowed £2.3 billion more than anticipated.
Lord O'Neill, who served during former PM David Cameron's second term, told the BBC: "The underlying dynamics between why our deficit is as it is and debt has risen so much is that we have just boosted government spending dramatically in recent years and - as many people talk about and I am among them - sooner or later, if the country wants to sustain a better longer term growth performance, we have to deal with those things."
He added: "I include the triple lock as well as a more realistic and sensible approach to welfare spending under genuine welfare reform. I am a supporter of a lot more sensible approach to government spending and taxation."
