Chancellor Rachel Reeves has addressed the rumblings that the cherished ‘triple lock‘ on pensions might be axed in the upcoming Budget, as the government scrambles to plug a £22 billion shortfall. Critics claim maintaining the pledge could prove untenable.
Under the triple lock guarantee, state pension rates are set to rise with whichever is greater inflation, average earnings, or a minimum of 2.5%. Forecasters at the Treasury anticipate that by 2025, this policy will elevate the full new state pension value beyond inflation, translating into an annual bump up of over £400 in cash terms – for those on the new state pension.
Defending her stance on Times Radio, Ms Reeves spoke about her choice to apply means-tests to winter fuel payments, pointing out that with increased pension credit uptake and keeping the triple lock intact, pensioner incomes would remain safeguarded. The decision to cut winter fuel allowances will leave roughly 10 million elderly without sums of up to £300 which previously assisted with their heating costs.
Reeves also touched on the surge in applications for pension credit, a trigger for the winter fuel payments, quoting figures: “We’re now seeing applications at more than 10,000 a week, they were around 3,000 a week previously”.
Ms Reeves stated: “But, also, we’re committed to keeping the triple lock, not just for one year, but for the whole of this parliament. Already, the triple lock means that the pension this year is worth £900 more than a year ago, I’ll announce at the Budget probably another increase of around £460 next April, and over the course of this parliament, the new state pension is likely to rise by £1,700.”
“So, we are protecting pension incomes through the triple lock, which means that they will go up by the highest of inflation, 2.5% or earnings.”
When questioned about potential cuts to public services, Rachel Reeves firmly stated “there will be growth in public spending”.
She told Times Radio: “There’s not going to be austerity under Labour. “Not only did it do huge damage to our public services, but it also did huge damage to our economy, because it choked off the investment that is needed to grow the economy.
“Now, the commitment that I will make for this Budget is that it will be about protecting living standards, fixing the National Health Service, and then, crucially, about rebuilding Britain.”
“Because we can’t keep cutting investment spending, which is what the previous Conservative government did, and that chokes off the private investment that is necessary to grow our economy. We need that infrastructure, the housing, the energy infrastructure, the digital infrastructure, the research labs.
“I want them here in Britain, there’s a global race on for some of the jobs and industries of the future, whether it’s in life sciences, low carbon energy or tech.”
There were “loads of reasons to be optimistic” but “investment doesn’t come by chance”, Ms Reeves said.
“We’re going to back the builders, not the blockers, and bring that investment back to Britain,” she added. Chancellor Rachel Reeves has defended her acceptance of £7,500 of clothing donations from friend Juliet Rosenfeld.
She told Times Radio: “Juliet and me have been friends for a long time, and she said to me about a year-and-a-half ago ‘I want to help you in the election campaign and the thing I’d really like to do is make sure that for big events and for the campaign trail, you’re smart and well turned out’.”
“I really appreciated that, she’s made a big difference to me. That’s not something that I’m going to do in government.”
She added: “I can understand that to a lot of people it looks a bit odd. I get that.[“
Rachel Reeves has insisted the row over senior Labour figures’ acceptance of “]freebies” was because they had been transparent about the donations.
The Chancellor told Times Radio: “The really important thing is that we’re always transparent.”
“These are not things we’re going to do in government, but everything was declared.”
When questioned on the suitability of accepting tickets to pop gigs and footie matches, she said: “As long as things are declared properly, so people can see if there’s any conflict of interest, I think it’s fine to go to the football and to go to a pop concert. I don’t begrudge people doing that.”
