The prime minister’s official spokesman has indicated that Liz Truss is “not making any commitments” on government expenditure, suggesting that her previous commitment to preserving the triple lock on pensions could be the next of her policy plans to go.
The triple lock ensures that state pensions increase by whichever is higher out of inflation, average wages or 2.5 per cent each year.
The Conservatives had pledged to maintain it in their 2019 election manifesto, although it was suspended for a period of one year in September 2021 when wages rose unexpectedly in the aftermath of the pandemic.
The government is yet to decide on how it will raise pensions next year, with Truss’ spokesman suggesting that ministers were aware of “how many vulnerable pensioners there are” and that it was a government priority to ensure they were provided for.
With inflation at around 10 per cent and salaries up on average by 5.4 per cent, raising pensions in line with earnings would save the government around £6 billion next year according to the Resolution Foundation think tank.
Despite the reversal of the mini-Budget announced by chancellor Jeremy Hunt this week, ministers have been told to look at plans for further cutbacks ahead of the chancellor's October 31 statement, during which he will outline the UK’s fiscal plan to bring down national debt.
It is in the backdrop of this that the PM’s spokesman made the remarks about Truss being non-committal on pensions.
Meanwhile, Truss has been pressed by some of her fellow Tory MPs to increase benefits in line with inflation, but her new chancellor has said that he will not be “making any commitments on any individual policy areas” yet.
Hunt has hinted since being appointed to the Treasury that “difficult” decisions on tax and spending will need to be made to boost the economy.
Downing Street has said that Hunt has asked government departments to cut back in areas that would not affect public services, a statement which suggests that cuts could focus largely on government efficiency and trimming the civil service.
Labour shadow work and pensions secretary Jonathan Ashworth said that Truss’ “disastrous” mini-Budget was to blame for the fact that ministers now had to weigh-up “further cuts to pensioners’ incomes”.
He said: “Pensioners deserve so much better than Liz Truss and her disastrous mistakes that are leaving older people paying the price.”
One commitment that Truss’ spokesman said would be maintained was hiking defence spending to three per cent of GDP by 2030, owing to the continuing conflict in Ukraine.
However, the Ministry of Defence has – like other government departments – been asked to look at where it could make cuts, reports say.
