During his statement to Parliament on Monday, new Chancellor Jeremy Hunt refused to be drawn on whether the State Pension would be uprated in line with the Triple Lock. The Chancellor was asked on four separate occasions whether he would observe the Triple Lock guarantee, but repeatedly said he could not commit to any changes at that time.
Labour’s Jeremy Corbyn and John McDonnell pressed Mr Hunt for reassurance that pensioners would not miss out as inflation continues to soar, but the Chancellor stood firm. The latest Consumer Price Index (CPI) will be released on Wednesday, October 19 and is expected to be above 9%, following on from 9.9% for the 12 months leading up to August.
The Triple Lock guarantees that State Pensions grow in line with whichever is highest out of earnings, inflation or 2.5%. It was introduced to help give pensioners a decent minimum level of income which would keep pace with growth in workers' earnings.
Last year the Triple Lock was suspended due to the economic fallout of the coronavirus pandemic, with pensioners given an increase of 3.1%.
Earlier this year, former DWP boss and now Health Secretary, Therese Coffey, said the temporary suspension was only for the 2022/23 financial year and would be restored for 2023/24.
Prime Minister Liz Truss has also stated her commitment to the return of the Triple Lock several times in recent weeks, but Mr Hunt’s responses have made many wonder if another U-turn is on the way.
Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, said: “Uncertainty continued to swirl around the Triple Lock last night with new Chancellor Jeremy Hunt refusing to confirm whether it would be used this year.
“Speaking in the House of Commons following his reversal of the mini-Budget the Chancellor said he would not be making ‘commitments on any individual policy areas’ before adding ‘but every decision we take will be taken through the prism of what matters most to the most vulnerable.’
“Inflation figures due to be published tomorrow will be used as part of the Triple Lock formula. They are expected to be much higher than either wages (5.4% to August) or 2.5% giving pensioners a state pension uplift of around 10%. There will be many pensioners banking on this increase, especially after last year’s increase of just 3.1% was rapidly swallowed up by rising inflation leaving many people struggling to cope.”
Ms Morrissey added: “We’ve already had far too much uncertainty about whether the Triple Lock would be applied. Just a couple of weeks ago then-Chancellor Kwasi Kwarteng was forced to reiterate government commitment to the Triple Lock after a colleague again refused to confirm if it was going to be used.
“The fact that the new Chancellor seems reluctant to confirm the Triple Lock is concerning. State pension uprating is usually confirmed in November so there will be an anxious wait for many pensioners to see what they will get.”
Commenting on the benefits uprating for 2023/24, Sarah Coles, senior personal finance analyst, Hargreaves Lansdown, said: “We’re still waiting for confirmation that benefits will rise with inflation. When you’re relying on benefits to make ends meet, life is uncertain enough.
“Given that those benefits were frozen for years, life is hard enough. It’s horrible that so many people whose finances are on a knife edge have to have to wait to hear their fate like this.
“Jeremy Hunt has pledged that support will be focused on the most vulnerable. It’s incredibly difficult to see how that wouldn’t include those who are skipping meals and relying on food banks during a time of rocketing prices. But one thing that the past few weeks has taught us is that it’s difficult to make any safe assumptions right now.”
Caroline Abrahams, Charity Director at Age UK, said: “The Conservative party made a manifesto promise to uphold the triple lock and the Prime Minister restated her commitment to it, in the clearest possible terms, during the summer and most recently within the last few days. If she reneges on it now it will be a betrayal of our older population, and hurt those on low and modest incomes the most. Let’s be clear, anything less than the triple lock would mean a real terms cut in the State Pension, which is only worth on average about £9000 anyway, yet comprises the bulk of the income for most older people in our country.
"Many older people are already deeply apprehensive about how they will get through the winter as prices continue to soar, so any decision to break the triple lock promise would be a huge blow. When Age UK asked older people this summer what their top priority was for our new PM they chose the triple lock and by a considerable margin, so if the Government breaks it, it will undoubtedly be viewed by many as a breach of faith."
To keep up to date with the latest State Pension news, join our Money Saving Scotland Facebook page here, or subscribe to our newsletter which goes out three times each week - sign up here.
READ NEXT
- DWP rejects call to revise Winter Fuel Payment eligibility date for older people
Full list of DWP financial support available to people of State Pension age
- State Pension increase in April could see half a million more retired people paying tax next year
DWP estimates 738,300 people will get State Pension payments for first time by next April
People on certain benefits could be due more than £1,000 in heating bill help
