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Tories promise to keep pension triple lock

Tories promise to keep pension triple lock
Emma Lunn
Written By:
Emma Lunn

Jeremy Hunt has said the Conservatives will keep the pension triple lock system if they win the election.

The triple lock policy was introduced by the coalition Government in 2010 and guarantees the state pension rises each year by the highest of average earnings growth, the rate of inflation (the Consumer Prices Index (CPI) in the year to September) or 2.5%.

Hunt told Sunday with Laura Kuenssberg on BBC One he was confident the “expensive” promise would be paid by growing the economy and said the current triple lock system would “absolutely” remain if the Conservatives win the general election.

He said: “When we came to office in 2010, pensioners were more likely to be in poverty than other income groups. Now, because of the triple lock that we introduced, they are less likely to be in poverty.

“I think that is a very important social change, because unlike adults of working age, pensioners can’t work, they have retired, and so we need to respect that.”

There were rumours before the Autumn Statement in November 2023 that the Treasury was considering using a lower measure of average earnings that excludes bonuses to save cash. But Hunt said in the statement that the triple lock would stay.

The triple lock means millions of pensioners will receive a hefty 8.5% state pension boost from April – more than double the current 3.4% rate of inflation.

As a result of the 8.5% increase, the ‘old’ state pension (paid to those who reached state pension age before 6 April 2016) will increase from £156.20 per week to £169.50 per week (£8,814 per year) from April. The ‘new’ state pension will increase from £203.85 per week to £221.20 per week (£11,502.40 per year).

There are also reports that Labour will keep the triple lock if elected.