Rachel Reeves plot to scrap state pension triple lock and blame Iran | Personal Finance | Finance
Over the years, deputies periodically put their heads above the parapet and opened fire on it. Then things get quiet. But they always come back. Suddenly, scores of MPs called for scaling back, backed by a series of articles claiming the mechanism was “unsustainable”. I’ve seen it a lot in recent weeks. There will be more. This hostility is strange because the triple lock is one of the few government policies that has been fully successful. It did exactly what it was designed to do: lift retirees out of poverty. Many people still struggle later in life, but without it they would be worse off. But a long and growing list of MPs wants it removed.
The triple lock increases the state pension each year by inflation, earnings or 2.5%, whichever is higher. It has made significant increases recently. In April 2023, pensions increased by 10.1% due to inflation. The following year, they were up 8.5% thanks to strong earnings growth. This year’s increase was a more modest 4.8%. For many MPs this is still too much. The attacks are coming thick and fast from both sides of the House of Commons.
Labor MPs Graeme Downie and Calvin Bailey called for the axe. As was Harriet Harman, now Baroness Harman, in the Lords. Conservatives are also after his blood. Former Tory Chancellor Jeremy Hunt said the government should “absolutely” rethink the triple lock, arguing it was burdening future generations with debt.
Oddly, Hunt was less keen to scrap it while in charge of the Treasury. He knew exactly how Tory voters would react. It’s easier to act tough after leaving office. Even stranger, Hunt and Chancellor Rachel Reeves are said to be best friends these days. He probably spends hours in Number 11 explaining how the economy works.
Which makes me wonder if he’s softening the ground for her. Reducing the triple lock to a single mechanism, such as earnings, would save billions of dollars that are urgently needed.
Reeves publicly insists the triple lock is safe for Parliament. Although he also said other things that turned out not to be entirely true.
Polly Toynbee of the left-wing newspaper The Guardian also wants the triple lock to be abolished, saying savings should go to young people. In other words, take support from those who have been paying for decades and give it to those who haven’t. This is not an argument that will impress many retirees.
Even former Labor MP Tony Blair published his own plan to replace the triple lock. Unfortunately, no one understands him. But it’s not just Labor that’s under attack.
Conservative MPs Tom Tugendhat, Sir Edward Leigh and Damien Green are also taking shots at the pot. Leigh claims the triple lock is “bankrupting” Britain. Green says this “serves its purpose” and is unsustainable.
So what’s behind this latest move? Incredibly, the war in Iran is being used as a cover. Critics now argue that defense spending must rise sharply and that the triple lock is cost-cutting. This is a sneaky trick. Wrap it in national security and hopefully the patriotic retirees will do their duty and take the hit.
There is little argument that we should spend more on defence. But is attacking the triple lock the way to pay for this? More and more lawmakers think so and say it out loud. This should really set alarm bells ringing.
