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The Conservative Party has set out its policy on the triple lock after party leader Kemi Badenoch hinted at moving to a means-tested system.
When asked about the triple lock on LBC recently, Ms Badenoch said “we’re going to look at means testing”. She went on to say that “means testing is something which we don’t do properly here”.
Her comment were cited as MPs voted in the Commons this week on the 4.1% increase to state pension payments in April, in line with the triple lock.
Shadow Work and Pensions minister, Danny Kruger, said that Ms Badenoch had been “misquoted” and that “we are not looking at cancelling the triple lock”.
Labour Work and Pensions minister Sir Stephen Timms pressed him on the matter, asking what exactly Ms Badenoch meant with her words.
Mr Kruger said: “We are not looking at means-testing the triple lock. She was talking more generally about the challenge of means-testing in our social security system, which I think is a legitimate question for us all to consider.”
The Tories were also asked to give account for shadow Chancellor Mel Stride’s previous comments that the triple lock is “unsustainable”.
Mr Kruger retorted that this comment was looking far into the future. He explained: “There are clearly questions about the long-term sustainability of our pensions system and our national insurance fund, but I think he was talking about the very long term, rather than the immediate situation that we are in. There is no intention to review the triple lock at this stage, on our benches anyway.”
Labour has pledged to retain the triple lock for the duration of this Parliament. During the General Election campaign last year, the Conservatives put forward a policy for a ‘triple lock plus’, where the personal allowance for pensioners would rise as well as their payments, meaning the state pension would never become subject to income tax.
As it stands, the personal allowance is frozen until 2028 at £12,570. The current full new state pension is £221.20 a week, or £11,502.40 a year, only just over £1,000 away from being subject to income tax.
With the 4.1% boost in April, the full new state pension will rise to £230.25 a week, or £11,973 a year, less than £600 away from attracting a tax bill.
Shadow health and social care minister, Luke Evans, mentioned their previous policy in the Commons debate this week. He asked Mr Timms: “Could he clarify for how much longer the state pension will be taxed?
“The Conservative Government stood [for election] on the triple lock plus. We lost the election, but we were going to take that fiscal drag out. Could he explain when that tax will be put in place or when it stays in place until?”
Mr Timm said in his reply: “We don’t have any plans to do what he suggests.”
