The Conservatives have stopped short of guaranteeing they would restore the State Pension Triple Lock in its current form if Labour goes ahead with plans to change it.
Badenoch warns reinstatement could be difficult
Conservative leader Kemi Badenoch said the Triple Lock remains her party's policy, but warned it could be “difficult” to reinstate the guarantee depending on what Labour does with the money saved by changing it.
Prime Minister Andy Burnham plans to remove the automatic link between State Pension increases and average earnings from 2030, with the savings used to help fund a new social care service.
Labour's proposed changes
Under Labour's plans, the State Pension would instead increase each year by whichever is higher out of Consumer Prices Index (CPI) inflation or 2.5 per cent. The existing Triple Lock guarantees the State Pension rises each year by the highest of average earnings growth, CPI inflation or 2.5 per cent.
Appearing on Times Radio on Tuesday, Mrs Badenoch was asked whether the Conservatives would reverse Labour's plans if the party returned to power.
She said: “I have said that the triple lock is our policy and it remains our policy. I don’t think going after pensioners is the right thing when there are loads of people who can work, who won’t work.”
However, she declined to give a firm commitment that the changes would be reversed.
No firm commitment given
Mrs Badenoch said: “When we are going to reverse Labour’s policies, I say we are going to reverse their policies.
“I have said that we are keeping this policy, but if they take that money and they spend it on something that we can’t get it back from, then it would be difficult for me.”
She added: “What I’m not going to do is lie to your listeners just so I can get votes. I tell the truth and I say the triple lock is our policy and we’re keeping it.
“But what I’m not going to do is to say something when I don’t know what the situation would be about what Labour has done with that money. We have to be very careful.”
Impact of the proposed changes
The proposed change would mean average earnings growth would no longer be one of the three measures used to determine the annual State Pension increase from 2030.
The earnings element can result in a larger increase when wages are rising faster than inflation and the 2.5% minimum.
Labour plans to retain the other two parts of the guarantee, meaning the State Pension would continue to rise by at least 2.5 per cent or CPI inflation each year, whichever was higher.
Savings generated by removing the earnings component are intended to contribute towards the cost of the Government's proposed new social care service.
Mrs Badenoch's comments mean the Conservatives remain committed to the Triple Lock as their current policy, but have not guaranteed that they would reinstate the existing three-part system if Labour's changes have already taken effect.
