Downing Street has said it remains “committed” to the pensions triple lock amid a debate about its cost to the public purse.
The triple lock is a government promise to raise publicly funded pensions by the level of average earnings, inflation or 2.5% – whichever is the highest.
It means the state pension could rise by 8.5% next year after new data showed that average weekly earnings growth in the three months to July rose by that amount in annual terms.
The triple lock was designed to ensure people’s pensions were not affected by gradual rises in the cost of living over time.
But there have been questions as to whether the government would stick to the manifesto promise given that pay and inflation are running at higher levels than usual.
The Institute for Fiscal Studies said in a recent report that the lock’s annual cost for the Treasury could reach anywhere between an additional £5bn and £45bn a year by 2050 due to the uncertainty created by the terms of the policy.
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Critics also point to the impact the current cost of living crisis is having on working-age people who are having to contend with rent hikes and rising mortgage rates.
Labour has also refused to give a guarantee that it will be able to stick with the policy if it wins the next election.
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Speaking to Sky News’ Politics Hub programme, shadow culture secretary Thangam Debbonaire said she wished she could give a “definitive answer” when pressed on the issue by Sophy Ridge.
But she said it would be “irresponsible” to make such a promise when there could be another year of Conservative economic policies.
“The fundamental principle that we are on the side of pensioners remains,” she added. “But we have got to try and find a way of balancing the economy for everyone.”
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Former Conservative chancellor, Lord Clarke, told Sky’s Sophy Ridge last week the government should ditch the lock.
Sunak’s Number 10 committed to policy
Number 10 today said it was sticking with the policy – although it refused to indicate how much the state pension will rise ahead of the “formal process” for uprating.
The prime minister’s official spokesman said: “You know there’s a formal process for this when it comes to uprating but we remain committed to the triple lock which has seen 200,000 pensioners lifted out of absolute poverty after housing costs are taken into account.”
Asked whether the average earnings figure of 8.5%, which includes bonuses, would be applied rather than a figure excluding bonuses, the official replied: “All those decisions on uprating are taken on a later date, later this year. I can’t pre-empt that work.”
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Lord Clarke tells Sophy Ridge the pension triple lock ‘must go’
The spokesperson also said the government would ensure the state pension “remains sustainable and fair across generations”.
Pensions secretary suggests figures not settled
Mel Stride, the work and pensions secretary, suggested pensioners may not get the 8.5% increase in the state pension that earnings figures suggest.
He told BBC Radio 4’s World At One: “There clearly is a difference if you take into account the non-consolidated elements of pay in recent times, but these are all decisions that I have to take with the chancellor as part of a very clear process, a statutory process actually, that I go through in the autumn.
“So I didn’t want to get into the weeds of exactly how I’m going to go about that.
“But the overarching point about the triple lock is that we remain committed to it.”
Image: Mel Stride, the work and pensions secretary
Asked whether he was not ruling out using a lower figure based on earnings without bonuses – at 7.8% – he said: “I’m not going to get drawn into those kinds of questions.”
Triple lock could be Labour-Tory dividing line
The Tories have said they are committed to keeping the pledge after the next general election but Labour has so far refused to offer the same guarantee.
Shadow environment secretary Steve Reed said it was “very important that older people are able to live with decency and respect under all circumstances”.
But he added: “We need to see where we are by the time of the next election.”
Image: Prime Minister Rishi Sunak
“It was pretty much a year ago to the month when the Conservative government launched that disastrous mini-budget that crashed the economy and caused prices in the shops to rocket and interest rates to escalate beyond levels that people have seen for a decade,” he said.
“I can’t stand here and tell you what the Tories are going to do over the next year.
“So, we will need to look at where we are come the election. But, it will be in our next manifesto.”
Chancellor Jeremy Hunt said the latest earnings figures were “heartening” and that the number of employees on payroll was “close to record highs”.
“Wage growth remains high, partly reflecting one-off payments to public sector workers, but for real wages to grow sustainably we must stick to our plan to halve inflation,” he said.
But Labour’s deputy leader Angela Rayner said the UK had experienced “13 years of economic failure by the Conservatives, and people can see that their cost of living has increased”.
She said wage rises have not risen across the board while bills continue to rise, so “most people are still finding it incredibly difficult”.
The prime minister’s spokesman has refused eight times to confirm whether recognition of Palestine could go ahead if Hamas remain in power and the hostages are not released.
Keir Starmer’s spokesman was questioned by journalists for the first time since the announcement last week that the UK will formally recognise the state in September – unless Israel meets certain conditions including abiding by a ceasefire and increasing aid.
The policy has been criticised by the families of UK hostages, campaigners and some Labour MPs, who argue it would reward Hamas and say it should be conditional on the release of the remaining hostages.
A senior Hamas politician, Ghazi Hamad, speaking to Al Jazeera, said at the weekend that major nations’ decision to recognise a Palestinian state “is one of the fruits of 7 October”.
The PM’s spokesman said on Monday: “The PM is clear that on 7 October, Hamas committed the worst act of terror in Israel’s history. That horror has continued since then.
“As the foreign secretary said over the weekend, Hamas are rightly pariahs who can have no role in Gaza’s future, there is a diplomatic consensus on that. Hamas must immediately release all hostages and have no role in the governance of Gaza.”
But asked whether removing Hamas from power and releasing hostages were conditions for statehood, he said a decision on recognition would be made at the UN General Assembly meeting in September, based on “an assessment of how far the parties have met the steps we have set out. No one side will have veto on recognition through their actions or inactions.”
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Up to 300 children could be evacuated from Gaza and given NHS treatment in the UK. The plans are reportedly set to be announced within weeks.
He added: “Our focus is on the immediate situation on the ground, getting more aid in to end the suffering in Gaza and supporting a ceasefire and a long-term peace for Israelis and Palestinians based a two-state solution.”
Starmer, who recalled his cabinet for an emergency meeting last week before setting out the new position, is following the lead of French president Emmanuel Macron, who first pledged to move toward recognising Palestinian statehood in April.
Canada has also backed recognition if conditions are met, including by the Palestinian Authority.
The prime minister had previously said he would recognise a state of Palestine as part of a contribution to a peace process.
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Efforts to bring Gazan children to the UK for urgent medical treatment are set to be accelerated under new government plans.
In his announcement last Tuesday, he said: “We need to see at least 500 trucks entering Gaza every day. But ultimately, the only way to bring this humanitarian crisis to an end is through a long-term settlement.
“So we are supporting the US, Egyptian and Qatari efforts to secure a vital ceasefire. That ceasefire must be sustainable and it must lead to a wider peace plan, which we are developing with our international partners.
“I’ve always said we will recognise a Palestinian state as a contribution to a proper peace process, at the moment of maximum impact for the two-state solution. With that solution now under threat, this is the moment to act.”
Adam Rose, a lawyer acting for British families of hostages in Gaza, has said: “Why would Hamas agree to a ceasefire if it knew that to do so would make British recognition of Palestine less likely?”
Former UK Chancellor and current Coinbase adviser George Osborne says the UK is falling behind in the cryptocurrency market, particularly when it comes to stablecoins.
At a press conference today in which Reform UK announced the Tory police and crime commissioner for Leicestershire was joining their ranks, as well as former prison governor Vanessa Frake, I asked Nigel Farage a simple question.
But his answer wasn’t what I expected.
I asked the Reform UK leader if the six-week campaign on law and order, with the tagline “Britain is Lawless”, was in fact project fear scaring people into voting for his party.
He utterly rejected that claim and responded to me saying: “No, they are afraid. They are afraid. I dare you, I dare you to walk through the West End of London after 9 o’clock of an evening wearing jewellery. You wouldn’t do it. You know that I’m right. You wouldn’t do it.”
I am not afraid to walk in the West End of London after 9pm wearing jewellery.
I have done it many times before and will continue to do so… but perhaps that is because I do not own a Rolex.
However, just because Farage is wrong on that point, doesn’t mean he isn’t tapping into other legitimate fears across the country.
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Snatch theft does worry me, hence why I now have a phone case with a strap attached to it that I can put around my body.
And I worry about knife crime in my area and what the impact could be if I were to have children – on the weekend someone was stabbed to death a stone’s throw from my house.
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Farage ‘not mincing his words’
However, if we look at the statistics, it is invariably a more nuanced picture than Farage or social media might have us believe.
And the Office for National Statistics (ONS) also notes that thefts outside of the home, eg phone snatching, has increased.
However, possession of weapons has fallen in London by 29% over the last three years.
And according to the ONS, crime in England and Wales is 30% lower than in 2015, and 76% lower than 1995.
And it is a similar picture for violent crime.
In short, am I right to be more worried that snatch theft and knife crime in London is increasing? Yes, and no.
But Nigel Farage is tapping into voters’ emotions – their feelings that the country is broken. It’s a picture the Conservative Party helped to create and the Labour Party happily painted to great effect during the general election campaign of 2024.
And the more politicians of all colours tell voters that “the system is broken”, the more voters might start to believe them.