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Triple lock: Liz Truss ditches pledge to raise pensions with inflation

Liz Truss has abandoned a key election pledge to raise state pensions in line with surging inflation, as she asks ministers to look for spending cuts.

The PM said two weeks ago she was "committed" to the triple lock, so payments rise by whatever is higher: prices, average earnings or 2.5%.

But her spokesman has now said she was "not making any commitments" on government spending.

It comes after ditching flagship tax cuts announced in the mini-budget.

Chancellor Jeremy Hunt's move to tear up most of last month's mini-budget announcements has reassured investors, but left Ms Truss battling to salvage her authority.

A decision on what to do with pensions from next April has not yet been made, and would normally be expected this autumn.

However, the PM's spokesman said she was still committed to her pledge of raising defence spending to 3% of national income by 2030.

The triple lock has been in place ever since it was introduced under the Conservative/Liberal Democrat coalition, apart from a one-year suspension due to Covid.

The government moved to suspend the commitment in 2021 after an unusually large rise in the average earnings figure during the pandemic.

Both the Conservatives and Labour promised to maintain the triple lock in their 2019 general election manifestos.

The PM's spokesman said she was aware of "how many vulnerable pensioners there are," and protecting the vulnerable was a "priority".

The spokesman said moving away from the previous triple lock commitment was a "mutual decision" by the PM and the chancellor, and it was their "agreed position" to prioritise economic stability.

Inflation stands at around 10%, whilst the figure for average earnings is 5.4%. The Resolution Foundation think tank has estimated raising pensions by earnings instead of inflation would save the government £6bn next year.

Ms Truss is also facing pressure from some of her MPs to raise working-age benefits in line with inflation, with the issue dominating the recent Tory party conference in Birmingham.

More here:- https://www.bbc.com/news/uk-politics-63303880

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