Pensions Triple Lock and Benefits in Spotlight as Sunak Delays Fiscal Plan

THE GUARDIAN: No 10 not committing to keeping triple lock or inflation-linked benefits rise in 17 November statement

Rishi Sunak and Jeremy Hunt at the start of the first cabinet meeting of Sunak’s premiership on Wednesday. Photograph: Stefan Rousseau/AFP/Getty Images
Ministers are to re-examine the pensions triple lock and increasing benefits in line with inflation over the next fortnight, according to No 10, after Rishi Sunak delayed the announcement of the government’s fiscal plans from 31 October to 17 November.

The Treasury has said the new date will now be a full autumn statement, with Sunak telling his cabinet that time needed to be made to do things in the proper way.

The chancellor, Jeremy Hunt, said he had agreed the change of date with Sunak and that the statement would set out in detail plans to reduce debt and a medium-term plan to grow the economy.

Sunak said it was “important to reach the right decisions and there is time for those decisions to be confirmed with cabinet”.

But in exchanges after prime minister’s questions, Sunak’s spokesperson made no commitment to the triple lock on raising pensions, a Conservative manifesto pledge, or to uprating benefits in line with inflation, which Sunak committed to doing as chancellor.

Truss had previously committed to the triple lock – a guarantee that the state pension will rise every year by whichever is highest of inflation, earnings growth or 2.5% – after doubts were raised by Hunt about whether an inflation-linked rise would be possible. “That is something that is going to be wrapped up into the fiscal statement, we wouldn’t comment ahead of any fiscal statements or budgets,” she said. » | Jessica Elgot Deputy political editor | Wednesday, October 26, 2022

If we cannot afford the Triple Lock, then we certainly cannot afford to maintain a royal family with all the expense that the maintenance of a royal family entails. – © Mark Alexander

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UK Government Give Inflated Benefits to Immigrants But Condemn Old Age Pensioners to Poverty
THE DAILY MAIL: Millions of Britons are being condemned to poverty in old age by the worst state pension in the EU, a study shows.

The basic state pension of £87.30 a week is equivalent to just 17 per cent of the average wage, it found.

This figure rises to 30 per cent once pension payments related to earnings are taken into account.

But this is still only half the EU average of 60 per cent, the financial firm Aon Consulting said. Its study concluded: "The inadequacy of the state system is beyond question."

Charities including Help the Aged warn the problem has been made worse because the state pension has failed to keep pace with increases in the cost of essentials such as heating, water, and council tax.

A recent study found a quarter of pensioners are having to cut back on basics to survive. Until recently many British workers could rely on private pensions such as final salary schemes.

However, many of the most generous schemes have been replaced by deals requiring higher monthly payments in return for a smaller pension.

In addition, the study said a "spate" of banking scandals and crises had damaged confidence in the private pension system.

As a result, Britons are not investing in private pensions on the scale needed to make up for the state system's failings.

The average age of retirement in Britain - 62.6 - is also above the EU average of 61. Some 57 per cent of Britons aged between 55 and 64 are in paid employment. Britons have worst state pension in EU (more) By Sean Poulter

Mark Alexander