DESPITE pledges to protect it in their election manifesto, The Conservative Government will look to temporarily break the link between the rise of State Pensions and the rise in earnings.
The Triple Lock ensures that the State Pension rises by either 2.5 per cent, average earnings growth or inflation – whichever is highest.
But the Government has moved to break that link for one year from April 2020, instead rising by 2.5 per cent in line with the consumer inflation rate.
The decision was made due to the belief amongst ministers that pensioners would benefit unfairly from the 8 per cent rise in average earnings caused by the pandemic. They call this “a statistical anomaly.”
Peers in the House of Lords stepped-in this week voting to restore the link with earnings in opposition to the Government’s move.
Labour member for Workington Town Council, Barbara Cannon said: “I’m so pleased the House of Lords has stood up for pensions.”
But: “In the end if the Government is intent on having it’s way it’ll have it’s way. The House of Lords are actually the revising chamber of legislation but in the end the Government will do what it wants to do.”
MPs are set to vote on whether to oppose the move by the House of Lords.
Councillor Cannon said: “The Triple Lock was created to protect the basic State Pension.”
“For a Government that keeps saying it would reintroduce the Triple Lock and then swipe it away when it suits them is shocking.
“There are many many people who might have given them the vote in the constituency think their pension was safe, the pension we’re talking about is not that massive.”
A good pension equates to around 11,000 per year.
“It’s absolutely outrageous I think I’ve worked for just over 40 years making that contribution. That contribution doesn’t just go towards the State Pension, also to the economy, the NHS. When you get to a certain age, you’ve been paying in all that time, you do expect to be looked after.”
Councillor Cannon has heard from constituents who are struggling on the current State Pension.
Conservative MP for Workington Mark Jenkinson said: “Last year there was a statistical anomaly, while earnings dropped significantly, wages didn’t.”
Workers were given reduced wages during the furlough scheme at the heigh of the pandemic. But when furlough and restrictions ended, businesses brought employees back to work on a full wage causing an artificial rise in the figures.
Mr Jenkinson said that pairing the rise in pensions with wages would cost billions.
He said: “It’s the equivalent from memory of a penny on everyone’s income tax. It’s all good the Labour Party virtue signalling on this. Just in the past couple of weeks I can point to measures that would need 10/12 per cent on income tax from the Labour Party.”
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel