Sir Steve Webb, former Liberal Democrats and Conservative Party coalition government Pensions Minister and partner at LCP, told The i that “no one imagined” it would still be in place now.
State pensioners have been warned the Triple Lock is under RENEWED pressure ahead of Labour Party Chancellor Rachel Reeves’ Spring Statement. Sir Steve Webb, former Liberal Democrats and Conservative Party coalition government Pensions Minister and partner at LCP, told The i that “no one imagined” it would still be in place now.
Despite the speculation, the Labour Party government has committed to keeping it for the duration of this Parliament until the next general election which must be held by August 2029. That means there won’t be any changes in today’s fiscal update from Rachel Reeves.
Sir Steve is widely credited as being the inventor of the mechanism and said: “But everyone is terrified to be the one to turn the switch off as they will be blamed.” He added that it was intended as a short-term solution, “as at the time we were making policies designed for the five-year lifespan of parliament”.
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Webb added: “Well, how come countries poorer than us in Europe can afford better pensions than us? For me, it’s about priorities, and I think a decent income in retirement is a priority.”
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, warned: “There have been calls for a more balanced approach.” She stressed the importance of long-term clarity, noting that “the state pension forms the backbone of people’s retirement income and people need certainty as to what they are going to get and when”.
Ms Morrissey says the constant speculation “undermines this certainty”, while Tom Selby, director of public policy at AJ Bell, said: “The aimless nature of the policy is problematic.” He said: “As is the fact politicians now blindly commit to it as though maintaining the triple lock means they are doing right by older people”.
“That created a significant cashflow drain on the Exchequer,” he said, “and is a risk the Treasury could mitigate by exploring smoothed earnings or inflation pegs over, say, a five-year cycle”.
“It’s not job done,” Webb said. “The state pension should provide a substantial enough income to live on — we’re not there yet.” Selby called for a “broad review of the state pension” because withoutit, the policy will remain “an oath of allegiance to the hallowed triple lock”.
Jon Greer of Quilter said:”This ensures that pensioners’ income doesn’t lose value during periods of high inflation.” Greer added that any change must be handled carefully, as the state pension is “a vital source of income for millions”.
