Pensions - Articles - Comment on Labour's commitment to retain pension Triple Lock

 “Labour’s commitment to retain the state pension triple lock raises the stakes for this aspect of the Conservative Party’s Manifesto and may make them think twice about scrapping it before 2020. What’s being missed in much of the debate on the triple lock, is that the economic outlook has changed and the Government can’t bank on a cost saving in dropping the triple lock in favour of a ‘double lock’ but they can bank on pensioners taking note of a change.

 “A double lock would involve granting the higher of price or earnings inflation and dropping the commitment to a minimum 2.5% increase. However, with the return of inflation, we could soon see inflation and earnings increases outstripping 2.5% anyway.

 “The true cost of dropping the triple lock could come at the ballot box if older voters are swayed by what would be positioned as an anti-pensioner policy. The current Government is also due to respond to proposals to increase State Pension Age, as set out by the Cridland Review. If the Government plans to endorse earlier increases to state pension age, retaining the triple lock for a few more years may soften that blow. But longer term, state pensions which are paid for by working age generations need to be affordable. Until the Conservative Manifesto is published, all bets are off.”