William Hague brands triple lock ‘runaway train’ fuelling ‘dangerous’ situation

Lord William Hague has branded the triple lock policy a “runaway train” that is creating a “dangerous” social and political situation in Britain by denying younger generations a fair “stake” in the economy.

The former leader of the Conservative Party wrote in The Times that the current system is “unsustainable” and unfair to taxpayers.

He said that as the triple lock is based on the highest of three measures — the rise in average earnings, inflation or 2.5 percent — the yearly increases will steadily go up by “considerably more” than all each of these measures.

State pension payments increased by a record 10.1 percent last year and could increase by 8.5 percent next year, in line with the latest figures for average earnings.

Mr Hague said the triple lock should not be immediately ditched and that people are entitled to a state pension that “keeps its value”, rising at least in line with inflation.

Don’t miss…
Pension planner uses cashback offer to pay for flights upgrade[PENSIONS]
Triple lock warning as policy creates ‘enormous uncertainty’[TRIPLE LOCK]
Woman makes £2,000 in a year with simple savings tip[SAVINGS]

But the former pensions minister also said it is unfair on younger taxpayers who face increasing financial pressures of high prices and the future costs of changes to the energy market.

He wrote: “To have an entire generation struggling to develop a stake in the economy is socially and politically dangerous.

“They should not be asked to pay for a runaway train in spending that the triple lock would become.”

Rishi Sunak previously committed to retaining the triple lock policy for next year’s increase.

Deputy Labour leader Angela Rayner was asked about the triple lock on BBC Breakfast but she declined to commit to the policy.

She said: “We will not make spending commitments when we don’t know what the circumstances are.

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

“But the last Labour government took over a million pensioners out of poverty and the next Labour government will ensure that pensioners and children and everyone in the UK can get on.

“But we won’t do that if we’ve got stagnation and we don’t have a growth strategy like this government has failed to do at the moment.”

Steve Webb, partner at LCP, said it remains uncertain whether or not a future Government will scrap the triple lock.

He said: “There is no doubt that the present Government and opposition would both like to drop the policy in order to make savings to be spent elsewhere.

“But both wants to avoid a situation where they have moved first by dropping the triple lock only to find that the other party has retained it”.

For the latest personal finance news, follow us on Twitter at @ExpressMoney_.

Source: Read Full Article