State Pension Triple Lock

Gary Sambrook Excerpts

Tuesday 8th November 2022 Commons Chamber

[Jonathan Ashworth]

I have read not only The Times but the 2019 Conservative manifesto, which committed Conservative Members to maintaining the triple lock, so I look forward to their joining us in the Division Lobby this evening—[Interruption.] I look forward to the hon. Member for Birmingham, Northfield (Gary Sambrook) joining us in the Division Lobby.

[Gary Sambrook (Birmingham, Northfield) (Con)]

Did the Institute for Fiscal Studies not say that the 2019 Labour party manifesto would benefit high earners rather than low earners on pensions, so is the biggest threat to UK pensioners not the Labour party?

[Jonathan Ashworth]

On the topic of manifestos, the new Prime Minister tells us that we do not need a general election because the 2019 manifesto gives the Conservative party a mandate. If that is the case, Conservative Members should not break their promise on the triple lock, and the hon. Member should join us in the Lobby this afternoon. Indeed, those in his marginal constituency will be watching carefully to see which way he votes later.

--- Later in debate ---

[Mel Stride]

That is simply an ingenious way—I congratulate the hon. Member—of asking precisely the same question. I have noticed that Members do that in this House from time to time, sometimes quite effectively.

The process is extremely clear. I have a duty under legislation to assess the triple lock and the uprating of benefits and, taking into account the September CPI figures and the average wage increases in the preceding period, and in conjunction with the Chancellor—because these decisions have a major impact on the Department’s annual managed expenditure—to come to a decision. That process is ongoing and will be concluded by the 17th, when the hon. Member will have the answers to all the questions he asks.

Let me focus on part of the central charge from the shadow Secretary of State regarding what this Government have or have not done for pensioners over a long period. As has been pointed out by Conservative Members, the triple lock was brought in under a Conservative-led Government in 2011. As to what has happened to the pension in that intervening period, the basic state pension has increased by £2,300, outperforming inflation by £720. We spend £110 billion a year supporting pensioners through the pension and £134 billion if we take wider measures into account. That is more than 5% of the entire output of the economy dedicated to supporting our pensioners.

[Gary Sambrook]

Talking of wider measures, pension credit can be worth up to £3,300 for individual pensioners, and it can open the door to many other benefits such as free NHS dental treatment and other cost of living measures. There are 800,000 people in the UK, many of whom will be in Birmingham, Northfield, who could claim pension credit but do not. Will the Secretary of State take this opportunity to encourage as many people as possible to claim pension credit?

[Mel Stride]

That is a truly constructive intervention because, as my hon. Friend points out, not everybody who would be qualified for that benefit has applied. About 70% of those who we believe are eligible receive pension credit, but 30% do not. My hon. Friend the Minister for Employment did an extraordinarily good job in June in encouraging people to sign up to pension credit, through the campaign that the Department launched, and I believe there was an increase in take-up of 275% due to his efforts. My hon. Friend the Member for Birmingham, Northfield (Gary Sambrook) is right: this is important not just for the benefits that we think of, and the credit itself, worth £3,300, but in terms of recent measures that the Government have announced, the £650 of support, which is available to pensioners only if it is unlocked by access to pension credit. It is an important credit to apply for.