(3 years, 3 months ago)
Lords ChamberI am sure the noble Lord will understand that, given the statistical anomaly that has led to average wage growth being 8%, it is just not fair to raise pensions by this figure. For one year only we are moving to a double lock and increasing pensions by the higher of inflation or 2.5%. We will then return to the triple lock. Since the triple lock was put in place in 2011, the state pension has increased by 3% a year; it is now at its highest level relative to earnings for 34 years. The number of pensioners in absolute poverty has fallen by more than 200,000 in the last decade. I do not dispute that this will impact some people, but I think that, for one year, in the light of everything the country has gone through, it is fair and people will agree with it.
My Lords, clearly many people welcome the hypothecated levy and the intended ring-fencing of those resources, but can my noble friend the Leader assure me that these resources will not end up being more waste in the NHS and social care, of which there clearly is too much today?
My noble friend is certainly right; this is a huge amount of investment going to where it is greatly needed. But he is absolutely right that, seeing as taxpayers—all of us—are being asked to contribute more, it is also reasonable to expect health and social care providers to ensure the money is well spent. We will work with them to ensure that happens.