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| Triple lock: Liz Truss ditches pledge to raise pensions with inflation | Triple lock: Liz Truss ditches pledge to raise pensions with inflation |
| (32 minutes later) | |
| Liz Truss has abandoned a key election pledge to raise 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. |
| A decision on what to do with pensions from next April has not yet been made, and would normally be expected this autumn. | |
| 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 in their 2019 general election manifestos. | |
| 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". |