The UK Government has not ruled out cutting benefits and dropping the pensions triple lock since Rishi Sunak became Prime Minister.
It follows weeks of uncertainty after Liz Truss had initially refused to confirm whether the triple lock would remain in place, before stating that it would. However, Sunak coming into power has once again cast doubt.
As reported by Leicester Live, if the Government does scrap it, it will be "a U-turn on a U-turn on a U-turn on a U-turn on a U-turn" - as the 2019 Conservative manifesto pledged to commit to the triple lock.
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Earlier in October, Truss commented that the State Pension would increase by 10.1 per cent — September's inflation figure — in April 2023. However, following her resignation, No 10 has again refused to guarantee it will rise in line with inflation.
Under the triple lock, the State Pension increases by whichever is largest out of September's inflation figure, average earnings growth or 2.5 per cent. If pensions increase by average earnings, which are lower than inflation, those on the New State Pension would be £443 worse off a year.
Responding to a question regarding the State Pension, the Prime Minister's Press Secretary stated that Sunak would "do what is right and compassionate", though did not provide further information. She added: "I'm not getting into speculation on what is going to happen.
"A lot of these things have to be discussed with the Prime Minister and the Chancellor I’m not going to speculate on what is and isn’t going to be in the Budget. I'm not going to comment on what decisions are going to be made. The PM's only been in office for the last 24 hours."
Liberal Democrat MP Wendy Chamberlain said: "This endless hokey cokey from the Conservatives is leaving pensioners and struggling families in a desperate limbo."
The issue will likely be resolved on November 17 in the Autumn Statement. Chancellor of the Exchequer Jeremy Hunt, who initially proposed dropping the triple lock before being overruled by Truss, is devising major spending cuts.
While the 2019 Conservative manifesto pledged to maintain the triple lock, then-Chancellor Sunak dropped it for one year as a consequence of Covid. He stated that it would return, and that pensions would increase by the triple lock in April 2023, though the new Chancellor has cast doubt on this.
The UK Government has also not pledged that benefits will rise in line with inflation, despite Sunak previously stating that they would. The Prime Minister's Press Secretary commented: "This is a discussion to be had with the PM and the chancellor. He's only been in office for 24 hours. They will discuss all these things."
No 10 reportedly may also abandon Truss's pledge to spend three per cent of GDP on defence by 2030, even though Minister of State for the Armed Forces and Veterans James Heappey has threatened to resign if this happens. The Prime Minister's Press Secretary also stated that he would U-turn on Ms Truss' decision to lift the ban on fracking.
However, the new Prime Minister is going to stick to the Energy Price Guarantee, which caps average bills at £2,500 a year until the end of March. And he will go ahead with the cut to National Insurance in November, as MPs have already voted on it.
That is despite the fact that the cut is reversing the rise that Mr Sunak put in place himself when he was Chancellor. The Press Secretary said: "Obviously there was action taken in the last six weeks and the former Prime Minister and the Chancellor. It's now gone through the house and it’s been voted on."
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