By Nick Gutteridge, Political Correspondent
Rishi Sunak declines to pledge continuation of pensions triple lock beyond next election as senior Tories urge cost-saving measures.
While the Prime Minister affirms his commitment to the mechanism, he stops short of guaranteeing its future beyond next year.
Divisions have emerged among top Conservative Party members regarding the policy introduced by the party in 2010.
Stephen Flynn, the SNP’s Westminster leader, challenges the Prime Minister to commit to the triple lock beyond the next election.
Mr Sunak responds by pointing out that the Conservatives introduced the mechanism and lifted 200,000 elderly individuals out of poverty.
“Our track record is clear. The Conservative Party is the only party in this House that has consistently stood up for our pensioners,” he states.
Pressed on the lack of a guarantee, he reiterates, “This is the Government that introduced and remains committed to the triple lock.”
The Telegraph reports that the Treasury is examining adjustments to the measurement of average earnings this year to limit the increase in pension payments.
Party members hold differing views
Mr Sunak’s comments follow clashes among senior Tories over whether to retain the mechanism, which is adding billions to the pensions bill annually.
Sir Jacob Rees-Mogg, former business secretary, argues that the current structure is unaffordable and becoming “exorbitant.”
“An ageing population and a shrinking workforce result in unsustainable costs,” he adds.
George Osborne, the chancellor who introduced the triple lock, suggests that his successor should modify the model to save money.
“The triple lock was introduced at a time when inflation and wage growth were not as high as they are now,” he tells ITV.
“I would be inclined to increase pensions by less than the triple lock, perhaps by one or two percent, and adjust working age benefits accordingly.
“This would allow for increased investment in public services, tax cuts, or the avoidance of upcoming tax increases.”
However, other senior members within the party advocate for the retention of the policy, including Theresa May, who highlights maintaining it during her time in office.
“The triple lock served an important purpose by addressing the inadequate pension increases under the previous Labour government,” the former prime minister tells LBC.
The mechanism, introduced by David Cameron, ensures that the state pension rises by the highest of wage increases, inflation, or 2.5 percent.
It is expected to increase based on earnings this year, with Downing Street considering adjustments to save approximately £630 million in taxpayer costs.
Usually, bonuses are included in the calculation, but the Treasury is exploring the exclusion of bonuses, which would reduce the increase from 8.5 percent to 7.8 percent.
Labour has also expressed doubts about the future of the triple lock, with deputy leader Angela Rayner declining to commit to it if the party wins the next election.
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