Pensions - Articles - Conservatives and DUP retain state pension triple-lock

 Commenting on the agreement reached between the Conservatives and the DUP, Steve Webb, Director of Policy at Royal London said:‘Retaining the triple lock is likely to be relatively cheap, now that inflation has risen above the 2.5% floor. Means-testing winter fuel payments was always going to be complex and controversial, so many Conservative MPs will be pleased to see this policy ditched. However, the DUP decision to back Conservative Finance Bills probably means a greater likelihood of getting cuts to pension tax relief through Parliament’.

 Steven Cameron, Pensions Director at Aegon said: “News that the state pension triple lock will remain until 2022 will be welcomed by those who feared replacing it with a double-lock without the 2.5% underpin would mean pensioners lost out. But in practice, if as many expect inflation remains above 2.5% in the coming years, it will actually may make no difference whatsoever. The bigger question is for how long future Governments can keep it in place, particularly if inflation returns to below 2.5%. With increased focus on intergenerational fairness, constantly prioritising retirees over those of working age could become increasingly politically difficult.”