Andy Burnham faces a state pension headache if he becomes Prime Minister, as the former Greater Manchester Mayor is being told to keep the triple lock in place.
Following current Prime Minister Keir Starmer’s resignation announcement this week, Mr Burnham is the favourite to win the keys to Number 10 Downing Street.
However, the likely next leader of the UK is facing calls to “maintain” the triple lock, the mechanism used to determine increases in state pension payments.
Under the current system, the state pension rises every year in line with either the rate of inflation, average wage growth, or 2.5 per cent; whichever is highest.
Mr Burnham is being told to keep the state pension triple lock in place
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In recent years, the triple lock has come under fire over its financial sustainability, with the Office for Budget Responsibility (OBR) projecting it will cost the Government £10billion more a year to keep in place than initially anticipated.
Conservative Party Shadow Chancellor Mel Stide has issued a stark warning to Mr Burnham following his return to Westminster.
He said: “Under the last Labour government, the UK had the fourth-highest level of pensioner poverty in Europe. The triple lock played a crucial role in changing that.
“Pensioners have far less ability to improve their financial circumstances. They can’t simply take on another job, work additional hours, or increase their income.
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“That’s why Andy Burnham must stand by pensioners, and why the Conservatives remain committed to the triple lock.”
Reports suggest the new MP for Makerfield’s policy team is exploring scrapping the triple lock as Mr Burnham recruits more economists to shape his agenda.
Among those reportedly joining the team are former Treasury minister Lord O’Neill, former Bank of England chief economist Andy Haldane, and former OBR Chief Richard Hughes.
Other parties have also accused Labour of planning to scrap the triple lock, including Reform.
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Reform UK’s Treasury spokesman Robert Jenrick said: “It’s yet another reason why we need a general election. Reform UK will cut the waste on illegal migrants, net zero madness, and welfare for those who don’t need it, so we can protect the dignity of pensioners who have worked hard and done the right thing their whole lives.”
Dennis Reed, the director of pensioner advocacy group Silver Voices, added: “Andy Burnham would be wise to ignore the weasel words of some of his advisors and stick to his campaign pledge of supporting the triple lock.
“There is an unrepresentative, but organised, chorus from anti-pensioner commentators urging Burnham to reassure the markets by scrapping the triple lock in the next parliament.
“This has all the hallmarks of the first Labour misstep, within a few weeks of taking office, of scrapping winter fuel payments to show Labour’s commitment to tackling the country’s economic malaise.”