NADHIM Zahawi has dropped a major hint today that the pension triple lock might STAY, despite Rishi Sunak not making any promises.
The new Conservative Party Chairman told Sky News this morning he understands pensioners are “uniquely unable to work”.
But the minister added he “can’t pre-empt” any of the measures coming up in the Autumn Budget.
The popular triple lock sees pension payments increase in line with whichever of the following is highest:
- Earnings – the average percentage growth in wages in Great Britain
- Prices – the rising cost of living in the UK, as measured by the Consumer Prices Index (CPI)
- 2.5%
Yesterday, Chancellor Jeremy Hunt made a bombshell announcement that the government’s Halloween mini budget will be delayed until November 17.
It will also be transformed into a full fat plan to plug a £35bn black hole in public finances.
A researcher from the Resolution Foundation think tank last night suggested that by delaying the budget for two weeks, the government could save £10bn.
This is because the global price of energy has dropped and the interest rate paid on government gilts is continuing to fall.
Government officials similarly told The Sun they expect money will be saved in the fortnight gap.
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The Autumn budget will also include important announcements on benefits and pensions.
Hard-up Brits will finally be told whether benefits will rise in line with inflation next April.
Meanwhile, pensioners will be able to know whether they could lose out on cash if the triple lock is ditched.
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This morning Mr Zahawi dropped a major hint suggesting that won’t happen.
He told Sky News: “What I would say to pensioners watching this morning is both the Prime Minister and the Chancellor are very much aware, and I am going to state the obvious here, pensioners are uniquely unable to work to add to their income, improve their income.”
But this afternoon No10 rowed back on the suggestion that triple lock is completely safe and sound.
A Downing Street spokesperson said: “We do recognise that uncertainty is difficult for pensioners and other groups of people.
“That’s why the Prime Minister and the Chancellor believe it is right to take the time to work carefully and diligently to come up with proposals that will provide that certainty in the long term.
“Given the very challenging economic circumstances the country and indeed the world faces, it is right that we take that time so that we put place measures that can last.”