Pensions - Articles - Chancellor refuses to confirm return of pension triple lock

 Helen Morrissey, Senior Pensions and Retirement Analyst at Hargreaves Lansdown: “Uncertainty continued to swirl around the triple lock last night with new Chancellor Jeremy Hunt refusing to confirm whether it would be used this year. Speaking in the House of Commons following his reversal of the mini-Budget the Chancellor said he would not be making “commitments on any individual policy areas” before adding “but every decision we take will be taken through the prism of what matters most to the most vulnerable.”

 Inflation figures due to be published tomorrow will be used as part of the triple lock formula. They are expected to be much higher than either wages (5.4% to August) or 2.5% giving pensioners a state pension uplift of around 10%. There will be many pensioners banking on this increase, especially after last year’s increase of just 3.1% was rapidly swallowed up by rising inflation leaving many people struggling to cope.

 We’ve already had far too much uncertainty about whether the triple lock would be applied. Just a couple of weeks ago then-Chancellor Kwasi Kwarteng was forced to reiterate government commitment to the triple lock after a colleague again refused to confirm if it was going to be used. The fact that the new Chancellor seems reluctant to confirm the triple lock is concerning. State pension uprating is usually confirmed in November so there will be an anxious wait for many pensioners to see what they will get.”

 Sarah Coles, Senior Personal Finance Analyst, Hargreaves Lansdown: “We’re still waiting for confirmation that benefits will rise with inflation. When you’re relying on benefits to make ends meet, life is uncertain enough. Given that those benefits were frozen for years, life is hard enough. It’s horrible that so many people whose finances are on a knife edge have to have to wait to hear their fate like this.

 Separately. Jeremy Hunt has pledged that support will be focused on the most vulnerable. It’s incredibly difficult to see how that wouldn’t include those who are skipping meals and relying on food banks during a time of rocketing prices. But one thing that the past few weeks has taught us is that it’s difficult to make any safe assumptions right now.”