Andy Burnham has issued an explanation to voters amid planned changes to the State Pension. The Prime Minister has said if Labour win the next general election, which is due in 2029, the party will change how the decision is made on annual increases.
Under current rules the State Pension rises every April by an amount decided on the "triple lock" which means the rise will either match the rate of inflation, average earnings or 2.5% - whichever is highest. However, many people believe this is unsustainable as it has seen the value of the State Pension rise significantly.
Triple lock impact and proposed changes
According to the Institute for Fiscal Studies, since its introduction in 2011, the triple lock has raised the value of the State Pension much faster than if it had tracked only prices or earnings. The IFS said it was now roughly 14% higher than it would have been if it had simply tracked earnings.
Under the planned changes, which were revealed at the Labour Party Conference, the State Pension will no longer rise by whichever is highest of 2.5%, average earnings or inflation, but instead, will rise by the highest of inflation and 2.5%. Any savings from the changes will go towards creating a National Care Service which will be aimed at tackling the cost families pay for care while also reducing pressures on the NHS.
Mixed reactions and Burnham's social media post
The government has had mixed reactions to the plan. Objectors included Sharon Graham, general secretary of the Unite union, who warned the plans could amount to "electoral suicide". Meanwhile, Tom Pope, chief economist at the thinktank Institute for Government welcomed the decision saying the triple lock was "a much more sensible way to increase pensions".
Now Andy Burnham has taken to social media to explain what will happen under the proposed change - and to seek people's views. Posting on his Facebook page he said: "I want to explain what's happening with the Triple Lock and why."
"The first thing to know is this: The state pension will keep going up. The Triple Lock means your pension rises each year by whichever is highest: inflation, wages or 2.5%. So it's always rising."
"That exact system will stay in place until the end of this Parliament. Then, pensions will still continue to rise every year. Going up at least by inflation or 2.5%, whichever is higher. And under these proposals, wages still matter too. The state pension will continue to keep pace with earnings over time."
"The savings generated from this adjustment will help to fund a National Care Service, so older people can have the security of a State Pension that keeps rising every year, and the peace of mind of knowing they won't face catastrophic care costs if they need support later in life."
"I think this is a fairer deal for older people. What do you think?"
Public response to the proposal
The post attracted thousands of comments as well as more than 18,000 likes, and the reactions were varied. David asked: "Why is it that when the country needs to raise money it always looks at raising it from the poorest in society i.e. pensioners and people on benefits. State pension is not a benefit it is a payment from an insurance policy that has matured. If the tax rate on earnings over 200k were to be raised by 5% it would not affect the lifestyle of those earning it."
Brenda added: "It would be fairer to give pensioners the living wage and link future increases to MP's pay rises."
However Stephanie backed the idea saying: "It's fair, and I speak as someone a few years away from state pension age who this will affect. If we want an NHS that works then we need a care system that works too. At least you've grasped the nettle, which is more than your predecessors did."
Stephen agreed saying: "I'm in my Seventies and think the proposed changes are a good compromise for both present pensioners and younger people who have to fund our pensions."
