Pressure Mounts on DWP to Scrap Triple Lock Ahead of Political Shift
The Department for Work and Pensions (DWP) is facing renewed calls to abolish the state pension triple lock, a policy that currently benefits 12 million pensioners annually. The demand comes as speculation grows that Labour MP for Makerfield, Andy Burnham, could become Prime Minister following Sir Keir Starmer's potential resignation on Monday.
In an article for the Guardian, Heather Stewart warned that Burnham has pledged to maintain the triple lock for this parliament. However, she argued that scrapping it would send a strong signal to bond markets if Burnham and his chancellor want to demonstrate fiscal discipline. "Some form of smoothed earnings uplift, where the state pension tracks earnings except when inflation races ahead, would be fairer, more predictable and, over time, would save billions," Stewart wrote.
Pensioners' Living Standards Outpace Other Groups
Data shows that pensioners' living standards have risen three times faster than those of non-pensioners over the past 20 years, and they are no more likely to be in poverty. The Resolution Foundation's Ruth Curtice stated: "Politicians owe us an answer on what they see as the appropriate level of the State Pension, rather than leaving it to random economic variation. Our answer is that, given the state of the public finances and the relative position of pensioners compared to non-pensioners, the time to favour pensioners over typical workers is over."
Curtice added: "But whatever the right level, the time has surely come to move away from a ratchet that leaves the State Pension a function of economic volatility."
Rishi Sunak Advises Burnham on Leadership Transition
Former Conservative Prime Minister Rishi Sunak offered advice to Burnham in a Sunday Times piece, urging him to have a clear plan for his first day in office. "Burnham must recognise that if he reaches No 10, he’ll never have more power than on his first day in the job. It is vital he has a clear and achievable plan for what he wants to do in those opening hours," Sunak wrote.
Sunak cautioned against becoming PM by default through Starmer's resignation, emphasizing the need for a contest to secure a strong mandate. "I remember on the morning after Boris Johnson dropped out in October 2022, I kept suggesting to my team that we should want a contest, that it would be good for us. Without one, your mandate is weak, and you end up being bound by commitments that aren’t your priorities," he said.
