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| Triple lock: Liz Truss ditches pledge to raise pensions with inflation | |
| (32 minutes later) | |
| Liz Truss is no longer promising to raising state pensions in line with surging inflation, as she asks ministers to look for spending cuts. | Liz Truss is no longer promising to raising 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%. | 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. | 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. | 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. | 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. |
| However, the PM's spokesman said she was still committed to her pledge of raising defence spending to 3% of national income by 2030. | However, the PM's spokesman said she was still committed to her pledge of raising defence spending to 3% of national income by 2030. |
| What is the pension triple lock? | What is the pension triple lock? |
| PM faces pressure to see benefits rise with prices | PM faces pressure to see benefits rise with prices |
| Truss defence plans would cost £157bn, says report | Truss defence plans would cost £157bn, says report |
| 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 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. | 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 their 2019 general election manifestos. | Both the Conservatives and Labour promised to maintain the triple lock their 2019 general election manifestos. |
| A decision on what to do with pensions next year has not been made yet. The PM's spokesman said she was aware of "how many vulnerable pensioners there are," and protecting the vulnerable was a "priority". | A decision on what to do with pensions next year has not been made yet. 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. | 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. | 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. | 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. |
| Liz Truss sat in the Commons on Monday as Mr Hunt outlined the tax U-turns to MPs | Liz Truss sat in the Commons on Monday as Mr Hunt outlined the tax U-turns to MPs |
| Labour's shadow work and pensions secretary Jonathan Ashworth said the government's "disastrous budget" meant it was "considering further cuts to pensioners' incomes". | Labour's shadow work and pensions secretary Jonathan Ashworth said the government's "disastrous budget" meant it was "considering further cuts to pensioners' incomes". |
| "Pensioners deserve so much better than Liz Truss and her disastrous mistakes that are leaving older people paying the price," he added. | "Pensioners deserve so much better than Liz Truss and her disastrous mistakes that are leaving older people paying the price," he added. |
| Liberal Democrat spokesperson for Work and Pensions Wendy Chamberlain said it would be a "kick in the teeth for millions of people" if the triple lock is not maintained. | Liberal Democrat spokesperson for Work and Pensions Wendy Chamberlain said it would be a "kick in the teeth for millions of people" if the triple lock is not maintained. |
| The government's comments on pensions come after ministers were told to draw up spending cuts ahead of a further economic statement form Mr Hunt at the end of this month. | The government's comments on pensions come after ministers were told to draw up spending cuts ahead of a further economic statement form Mr Hunt at the end of this month. |
| On Monday, Mr Hunt told MPs "decisions of eye-watering difficulty" on tax and spending would have to be taken, as the government tries to restore economic stability. | On Monday, Mr Hunt told MPs "decisions of eye-watering difficulty" on tax and spending would have to be taken, as the government tries to restore economic stability. |
| The chancellor - appointed after Ms Truss made her previous commitment on pensions - told them he was "not making any commitments on any individual policy areas". | The chancellor - appointed after Ms Truss made her previous commitment on pensions - told them he was "not making any commitments on any individual policy areas". |
| No 10 said the chancellor had asked them to "focus" on areas that would not affect the service the public receives. | No 10 said the chancellor had asked them to "focus" on areas that would not affect the service the public receives. |
| However, all departments, including the Ministry of Defence, have been asked to find savings for the taxpayer. | However, all departments, including the Ministry of Defence, have been asked to find savings for the taxpayer. |
| Allies of Defence Secretary Ben Wallace say he considers maintaining the 2030 defence spending target a red line. A source told the BBC Mr Wallace would "hold the PM to the pledges made". | Allies of Defence Secretary Ben Wallace say he considers maintaining the 2030 defence spending target a red line. A source told the BBC Mr Wallace would "hold the PM to the pledges made". |