State pension warning: Sunak told hundreds of thousands could turn on Tories over policy

Martin Lewis explains benefits of of workplace pension

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Last month, the Government suspended the “triple lock” policy used to set how much the state pension rises each year. The state pension is supposed to increase each year in line with whichever of the following three things is highest: inflation, the average wage increase or 2.5 percent.

Known as the triple lock, it was introduced by the Conservative/Liberal Democrat coalition government in 2010.

However, during the coronavirus pandemic, many people were earning less than usual because they were placed on furlough.

Therefore, as people return to work and full pay, there has been an estimated eight percent increase in average earnings from May to June 2021.

Under the triple lock rule, it would mean that state pensions would need to rise by a similar amount.

But it was announced by Work and Pensions Secretary Therese Coffey that the triple lock will be suspended for 2022-2023.

However, Dennis Reed, from Silver Voices, warned the Chancellor it would be on the “Government’s head” if they abandon the triple lock next year.

He told “It would unthinkable in a civilised society that the low state pension we get in this country is being further diluted.

“Many of our members of former Conservative voters but have asked us at future elections to campaign against the Tories if they abandon the triple lock.

“It will be on the Government’s head as well in terms of the voting intentions of the older generation, which the Government takes for granted.

“It will be on their heads if they abandon the triple lock or scrap it altogether.

“The anger that there is will transmit into votes.”

Mr Reed’s comments come as it was announced pensioners will receive a boost of more than £5.50 a week to their state pension as of next April, due to the September inflation figures.

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The latest CPI inflation figures mean the full new state pension will increase from £179.60 to £181.15 per week in April 2022.

The full basic state pension will also rise from £137.60 to £141.85 per week.

However, tax experts previously warned the cash-strapped Treasury may be forced to suspend the triple lock for the second year in a row.

In response to this, Mr Reed said it would be “very scandalous” if the Government decides to abandon the triple lock next year.

He said any decision to weaken the pension protection would “consign hundreds and thousands” of retired households into poverty.

Mr Reed continued: “The decision on the triple lock abandoned the state protection for pensioners.

“It would be very scandalous if the Government decides to abandon the triple lock next year.

“Basically, any decision to weaken the triple lock is consigning hundreds and thousands more retired households into poverty.

“There is no other way to look at it which is why we are campaigning so hard to get a rethink on it.”

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