Pensions: Triple Lock

Lord Davies of Brixton Excerpts

Wednesday 16th March 2022 Lords Chamber

[Baroness Scott of Bybrook (Con)]

No, I do not agree with the noble Lord. For a start, there is no surplus in the fund that can be simply drawn on. The Government Actuary’s Department recommends that a surplus is kept in the national insurance fund to cover day-to-day variations in spend and the surplus is lent to the Government while that happens. It cannot simply be spent again. The money is invested, it is ring-fenced and there is no question of the Government being in a position to use this facility to extract money from the fund as an extra source of revenue.

[Lord Davies of Brixton (Lab)]

The Minister quoted what the Government Actuary said. The surplus in the fund will be heading towards 60% but the surplus recommended by the Government Actuary is 16%. That is a difference of more than 40% of the fund. There is the money there.

[Baroness Scott of Bybrook (Con)]

I have no answer to that but I will make sure I get one. I assure noble Lords that the fund cannot be used for the purposes that have been put forward.