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Evening Standard
Evening Standard
Business
Martina Bet

Truss commits to pensions triple lock despite Hunt signalling it could be scrapped

The prime minister, Liz Truss, has committed to retaining the triple lock on pensions, meaning they will rise in with inflation.

In response to a question from the SNP’s leader in Westminster, Ian Blackford, she said she was “completely committed to it. So is the Chancellor.”

She was speaking during Wednesday’s prime minister’s questions in the Commons and her statement appeared inconsistent with earlier comments from her Chancellor, Jeremy Hunt.

On Monday Mr Hunt had refused to make any commitments on “individual policy areas”. The Chancellor said decisions would be taken “through the prism of what matters” to the most vulnerable but failed to guarantee the triple lock, the policy commitment by which state pensions are uprated by whichever is highest of 2.5%, wages and inflation.

And on Tuesday the prime minister’s spokesman also said he could not make any commitments on the triple lock.

I’m very aware of how many vulnerable pensioners there are and the importance of the triple lock but, as I said earlier, I’m not making any commitments on any individual policy areas, but every decision we take will be taken through the prism of what matters most to the most vulnerable

Chancellor Jeremy Hunt

Mr Hunt also refused to make commitments on defence spending, despite Ms Truss promising to increase it to 3 per cent of GDP by 2030 during her leadership campaign, and on whether benefits would rise in line with inflation. The defence secretary, Ben Wallace, and of his ministers, James Heappey, have indicated a failure to keep to the 3 per cent pledge could be a resigning matter for them.

The Chancellor’s comments came as he was answering questions from MPs after delivering his first statement in the Commons as Chancellor on Monday, during which he warned the Government would not shy away from taking “difficult decisions”.

Labour’s Emma Hardy (Kingston upon Hull West and Hessle) asked: “Does the Chancellor agree with the Prime Minister who confirmed that the state pension would rise with inflation in April and if he does agree, can he commit to it today?”

Mr Hunt replied: “I’m very aware of how many vulnerable pensioners there are and the importance of the triple lock but, as I said earlier, I’m not making any commitments on any individual policy areas, but every decision we take will be taken through the prism of what matters most to the most vulnerable.”

Inflation is expected to be by far the highest factor this year, potentially putting pensioners in line for an increase of 10% or more.

Last year, the triple lock was suspended, with pensioners receiving a 3.1% increase.

The issue of defence spending was raised by the Conservative chairman of the Commons Defence Committee and former minister Tobias Ellwood, who told him the “the world is getting more dangerous, not less”.

“Will he commit to continuing that promise of 3% GDP defence spend?” Mr Ellwood asked.

The Chancellor reminded MPs he was sympathetic to the cause as he “campaigned for it when I was a backbencher very loudly and visibly”.

“But all of these things have to be sustainable,” he added.

“Any increase in defence spending has to be an increase that we can sustain over very many years. Let me just say to him today that I agree with him entirely, that the duty of the Government is security for the population in all senses of the word.”

Labour former shadow chancellor John McDonnell instead pressed Mr Hunt on whether the Government would increase benefits by at least the rate of inflation.

The Chancellor reiterated his stance on not making any “firm commitments” on individual elements of tax and spending, adding: “But I hope he is reassured that I have been very clear about the values through which we will take those decisions.”

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