The State Pension has been in the news a lot recently for several reasons.
One of the main things I have campaigned on over the years
is for the Government to retain the triple lock for the State Pension.
The triple lock is designed to ensure pensioners, especially
if they rely solely on the state pension, are able to afford rising prices, or
keep pace with the increases in the working population's wages. It means the state pension rises in line with
average earnings growth, inflation or 2.5% - whichever is highest.
It was introduced by the coalition government in 2010, but
there has been debate over whether it can continue in the long-term future due
to its costs.
I have been clear in conversations with colleagues in
Government that retention of the Triple Lock, particularly while we are experiencing
cost of living pressures, has never been more important.
The Government has listened over the past couple of years
and kept the Triple Lock. Last year saw the largest ever increase of the State
Pension, with a 10.1% increase in April 2023, and next month will see another
significant increase, with a rise of 8.5% from April 2024. Combined this means
the state pension will have risen by around £1800 in this time. It is
absolutely right that we provide pensioners with these increases during these
difficult times.
But now we are looking to the future, with a General
Election due later this year, and I was delighted to see over the weekend that
the Chancellor, Jeremy Hunt, has now publicly committed to retaining the State
Pension Triple Lock as a Manifesto commitment should the Conservatives win the
next election.
The Chancellor said that although continuing the Triple Lock
will be an "expensive commitment… You can only make that commitment if
you're confident that you're going to deliver the economic growth that is going
to pay for it." As we have seen with the continuing fall in inflation
and economic growth indicators brought about by the Chancellor’s sensible management
of the economy, this is happening and therefore I am pleased that the
Government is doing the right thing and committing to the Triple Lock under a
future Conservative Government.
I do understand that some people are frustrated that the
Personal Allowance, the amount you can earn before paying tax, will not be
going up this year. This is a difficult but necessary decision to maintain
income tax thresholds until April 2028 to ensure the tax system supports strong
public finances. That being said, the Government has increased the Personal
Allowance by over 40 per cent in real terms since 2010, ensuring some of the
lowest earners do not pay income tax. Thanks to the PA, in 2021-22 around 30
per cent of earners did not pay tax.
Also in the news last week was the outcome of the
Ombudsman’s investigation into issues with the Department for Work and Pensions
communicating with women born in the 1950’s over State Pension changes.
The Ombudsman’s report had previously concluded that
maladministration under the last Labour Government between 2005-07 has caused
injustice, and their report into the DWP’s communication of the changes is now
complete and will be put before Parliament. The Government will consider the
Ombudsman’s report and respond in due course, having cooperated fully
throughout the investigation.
As ever, if I can be of assistance on any matter, my office
is available for any constituents needing help, advice or guidance – tel: 01726
829379 or email: office@stevedouble.org.uk
