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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1:15
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”.
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Flawed data has been used repeatedly to dismiss claims about “Asian grooming gangs”, Baroness Louise Casey has said in a new report, as she called for a new national inquiry.
The government has accepted her recommendations to introduce compulsory collection of ethnicity and nationality data for all suspects in grooming cases, and for a review of police records to launch new criminal investigations into historical child sexual exploitation cases.
Image: Baroness Louise Casey carried out the review. Pic: PA
The crossbench peer has produced an audit of sexual abuse carried out by grooming gangs in England and Wales, after she was asked by the prime minister to review new and existing data, including the ethnicity and demographics of these gangs.
In her report, she has warned authorities that children need to be seen “as children” and called for a tightening of the laws around the age of consent so that any penetrative sexual activity with a child under 16 is classified as rape. This is “to reduce uncertainty which adults can exploit to avoid or reduce the punishments that should be imposed for their crimes”, she added.
Baroness Casey said: “Despite the age of consent being 16, we have found too many examples of child sexual exploitation criminal cases being dropped or downgraded from rape to lesser charges where a 13 to 15-year-old had been ‘in love with’ or ‘had consented to’ sex with the perpetrator.”
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3:18
Grooming gangs victim speaks out
The peer has called for a nationwide probe into the exploitation of children by gangs of men.
She has not recommended another over-arching inquiry of the kind conducted by Professor Alexis Jay, and suggests the national probe should be time-limited.
The national inquiry will direct local investigations and hold institutions to account for past failures.
Home Secretary Yvette Cooper said the inquiry’s “purpose is to challenge what the audit describes as continued denial, resistance and legal wrangling among local agencies”.
On the issue of ethnicity, Baroness Casey said police data was not sufficient to draw conclusions as it had been “shied away from”, and is still not recorded for two-thirds of perpetrators.
‘Flawed data’
However, having examined local data in three police force areas, she found “disproportionate numbers of men from Asian ethnic backgrounds amongst suspects for group-based child sexual exploitation, as well as in the significant number of perpetrators of Asian ethnicity identified in local reviews and high-profile child sexual exploitation prosecutions across the country, to at least warrant further examination”.
She added: “Despite reviews, reports and inquiries raising questions about men from Asian or Pakistani backgrounds grooming and sexually exploiting young white girls, the system has consistently failed to fully acknowledge this or collect accurate data so it can be examined effectively.
“Instead, flawed data is used repeatedly to dismiss claims about ‘Asian grooming gangs’ as sensationalised, biased or untrue.
“This does a disservice to victims and indeed all law-abiding people in Asian communities and plays into the hands of those who want to exploit it to sow division.”
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3:07
From January: Grooming gangs: What happened?
The baroness hit out at the failure of policing data and intelligence for having multiple systems which do not communicate with each other.
She also criticised “an ambivalent attitude to adolescent girls both in society and in the culture of many organisations”, too often judging them as adults.
‘Deep-rooted failure’
Responding to Baroness Casey’s review, Ms Yvette Cooper told the House of Commons: “The findings of her audit are damning.
“At its heart, she identifies a deep-rooted failure to treat children as children. A continued failure to protect children and teenage girls from rape, from exploitation, and serious violence.
She added: “Baroness Casey found ‘blindness, ignorance, prejudice, defensiveness and even good but misdirected intentions’ all played a part in this collective failure.”
Ms Cooper said she will take immediate action on all 12 recommendations from the report, adding: “We cannot afford more wasted years repeating the same mistakes or shouting at each other across this House rather than delivering real change.”
Image: Home Secretary Yvette Cooper responded to the report. Pic: PA
Conservative leader Kemi Badenoch said: “After months of pressure, the prime minister has finally accepted our calls for a full statutory national inquiry into the grooming gangs.
“We must remember that this is not a victory for politicians, especially the ones like the home secretary, who had to be dragged to this position, or the prime minister. This is a victory for the survivors who have been calling for this for years.”
Ms Badenoch added: “The prime minister’s handling of this scandal is an extraordinary failure of leadership. His judgement has once again been found wanting.
“Since he became prime minister, he and the home secretary dismissed calls for an inquiry because they did not want to cause a stir.
“They accused those of us demanding justice for the victims of this scandal as, and I quote, ‘jumping on a far right bandwagon’, a claim the prime minister’s official spokesman restated this weekend – shameful.”
The government has promised new laws to protect children and support victims so they “stop being blamed for the crimes committed against them”.
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