Rishi Sunak facing calls to raise benefits with inflation as he hints pension ‘triple lock’ will stay
Rishi Sunak has been urged to raise all benefits in line with inflation as he gave one of his strongest hints yet that “triple lock” protection for the state pension will be preserved in Thursday’s autumn statement.
Speaking ahead of Jeremy Hunt’s 17 November mini-Budget, the prime minister said that pensioners were “at the forefront of my mind” and promised that the chancellor’s tax-and-spend plans had “fairness and compassion” at their hearts.
As they welcomed his comments, one charity warned that the triple lock commitment could mean the difference between “frightened” pensioners using their central heating or not this winter.
But against the backdrop of a widespread cost of living crisis, Mr Sunak faced calls to commit to raising all benefits, including those for working-age people, in line with prices.
Ryan Shorthouse, chief executive of the Conservative think tank Bright Blue, said: “It is intellectually indefensible to protect the value of the state pension in line with inflation but not universal credit. Either both rise by inflation or both rise by earnings.”
Karl Handscomb, senior economist at the Resolution Foundation think tank, said: “With the cost of living crisis set to continue, and possibly even deepen, next year, it’s important that the chancellor sticks to pledges made this summer by his recent predecessor, and now prime minister, Rishi Sunak that all benefits – for working-age families, as well as pensioners – are uprated in line with prices next year.”
Downing Street sparked fears last month that the triple lock could be scrapped by saying it was “on the table” in discussions as Mr Sunak and Mr Hunt drew up plans to fill a £60bn hole in the nation’s finances.
Ditching the measure – which ensures pensions rise in line with the highest of inflation, average wages or 2.5 per cent – would save the Treasury around £5bn a year.
But the suggestion that it could be dropped sparked fury among campaigners who accused Mr Sunak of sowing anxiety among older people just weeks after Liz Truss had guaranteed the triple lock’s survival.
Challenged over the fate of the measure, which was a 2019 Tory manifesto pledge, as he travelled to the G20 summit in Indonesia, Mr Sunak refused definitively to confirm that the triple lock will stay.
But he told reporters: “My track record as chancellor shows I care very much about those pensioners, particularly when it comes to things like energy and heating because they are especially vulnerable to cold weather.
“That’s why when I announced support earlier this year as chancellor we made extra provision for pensioners to receive up to £300 alongside their winter fuel payments to help them cope with energy bills over the winter.
“So I am someone who understands the particular challenge of pensioners. They will always be at the forefront of my mind.”
Mr Sunak said Tory governments had a “good track record of protecting pensioners”, arguing that the state pension is now £700 higher than it would have been had David Cameron not introduced the triple lock during the coalition administration.
“I can’t comment on any decisions – and that’s not just about the triple lock, it’s about anything – days before a financial statement,” he said.
“But we will put fairness and compassion at the heart of all the decisions we make and I am confident people will see that next Thursday.”
Caroline Abrahams from Age UK said the charity “fervently” hoped the chancellor would protect the triple lock and raise benefits in line with inflation.
She added: “The price rises we’re seeing, to energy above all, are incredibly frightening for older people, and knowing there was some relief coming in the spring would make a huge difference. In many cases, it could persuade them to run their central heating this winter when otherwise they’ll try too hard to manage without it, at major risk to their health.”
Morgan Vine, head of policy and influencing at Independent Age, said a “fair and compassionate” autumn statement would protect the triple lock and uprate benefits in line with inflation.
