The Department for Work and Pensions has received a stark warning over adopting Sir Tony Blair's suggestions to scrap the Triple Lock and state pension age. The Tony Blair Institute, established by the former Labour Prime Minister, has called for the abolition of the Triple Lock, the removal of Pension Credit, and the creation of a new fund to replace the current system.
Proposed 'Lifespan Fund'
The Institute suggests ministers could develop a new 'lifespan fund' that would replace both the basic and new state pensions. Under this proposal, individuals would contribute to a notional fund providing up to 20 years of support. People could also access some of their entitlement before retirement, according to the report released on Friday, 1 May.
Political Reactions
Kwasi Kwarteng, former Conservative Chancellor, supported the idea, stating: 'Scrap the triple lock and means-test it. The situation is unsustainable.' He noted that the Triple Lock, introduced in 2010, is in the firing line, but main parties fear losing a powerful voting block. He added that some degree of means-testing should be introduced, as was originally the case in 1909.
However, Sir Steve Webb, former Liberal Democrats Pensions Minister, has savaged the proposal. He told The Telegraph: 'Recent state pension reform, which I oversaw as pensions minister, created a system designed to be far simpler, with men and women receiving broadly similar amounts and most new retirees getting at or near the standard flat rate. This is absolutely not the time to throw the whole thing in the air and replace it with an intrusive system.'
Expert Concerns
Experts told the I newspaper that any state pension replacement 'needs to be simple' and that the TBI's proposal is not. They warned that the poorest would be hardest-hit. Emily Braeger, a 25-year-old reporter, admitted that ditching the Triple Lock would make her 'nervous'. The article continues below with further analysis.
