Prime minister Liz Truss has today said her government is 'committed' to protecting the pensions triple lock pledge, keeping the state pension in line with inflation.
Despite the new Chancellor, Jeremy Hunt, saying that he could not commit to raising state pension payments in line with inflation earlier this week, Truss said to the House of Commons today:
"We have been clear in our manifesto that we will maintain the triple lock, and I am completely committed to it."
The pledge means pensions will rise in line with inflation - today announced to have been 10.1% in September, which is traditionally the figure used to calculate the following April's pension rise. The move is thought to mean that pensions will cost the government an additional £4bn - £5bn in comparison with raising the pension rate in line with average earnings.
Andrew Megson, CEO of My Pension Expert, said:
"On the surface, Liz Truss reaffirming her commitment to the triple lock will be very welcome news for all those with a state pension. However, pension planners will likely view this announcement with some scepticism."
“The PM is performing U-turn upon U-turn. It’s impossible to keep up or predict what will happen next. Only time will tell whether this commitment will come to fruition. So, many will be looking to The Chancellor’s next fiscal statement on 31 October to provide more clarity in this regard.”
