The Prime Minister is poised to signal the end of the pensions triple lock during the Labour Party conference this Tuesday, according to reports. Andy Burnham will address the controversial mechanism, which determines the annual State Pension rise, in a speech to the conference audience in Liverpool.
He is expected to tell his party that the policy is not working as it was set up to do and that Labour's next manifesto should include a pledge to review it, reports The Express. The State Pension increases every April based on the triple lock, rising by whichever is higher among inflation, average wage increase, or a flat-rate 2.5%. The mechanism has been in place since 2011.
Review expected but not a full scrapping
Senior Government sources have told The Telegraph that Mr Burnham will outline his wish to review the triple lock but stop short of pledging to scrap it entirely, the publication reports.
Among senior Labour figures, Sharon Graham, general secretary of the Unite union, told The Times that she thought a review would be "almost electoral suicide", while Defence Secretary Wes Streeting said the triple lock will remain in place until at least the next election as the Labour Party stands by its manifesto pledges from 2024. Mr Streeting also refused to say whether it would be included in Labour's next manifesto.
Concerns over sustainability
Darren Jones, who left the Cabinet earlier this year, cast doubt over the triple lock's future, telling the BBC: "Maybe, you know, the triple lock is very expensive in the years ahead and it's a benefit to older people. If you're re-allocating money to help older people in the social care system, maybe there's some reform that could be made there." He suggested scrapping the triple lock was an option the Government should consider alongside others.
While the triple lock has been credited with rebuilding the pension's value relative to prices and earnings, concerns have been raised about its long-term sustainability, with soaring Government spending on the State Pension.
Industry calls for clarity
Charlotte Kennedy, a chartered financial planner at wealth management group Rathbones, said that whether or not the triple lock survives in its current form or is eventually reformed, people need greater clarity. Maike Currie, vice president of Personal Finance at PensionBee, said: "The triple lock has done an important job rebuilding the value of the State Pension but it was designed as a catch-up mechanism, not necessarily a forever policy. Any reform needs to be clearly signalled well in advance. People plan for retirement decades ahead, so you can't move the goalposts overnight."
