State Pension Triple Lock

Jerome Mayhew Excerpts

Tuesday 8th November 2022 Commons Chamber

[Jerome Mayhew (Broadland) (Con)]

I am not the first Member of the House to recognise that this motion is not a serious request of the Government, because we have the autumn statement in just nine days’ time. It is blatantly a political stunt to gain headlines.

[Tonia Antoniazzi]

I was going to make reference in my speech to Conservative Members saying that this debate was a stunt. It is not a stunt; it is a political lever. This is an Opposition day—this is what we do in this place. I ask the hon. Gentleman please to correct the record.

[Jerome Mayhew]

I am grateful for the hon. Lady’s intervention; it brings to mind a number of the interventions and speeches from Labour Members talking about pensioners’ fears as they consider the outcome of the triple lock decision. Surely this debate, called by Labour, does not reduce fear but increases it, and that in itself is wholly irresponsible. It is scaremongering.

I am surprised that Labour wants to draw attention to pensions policy, because the Government’s activities over the last dozen years put Labour to shame. Let us look at pensions more widely, because pensioners get income from multiple sources. We have the state pension, but there are also private and company pensions, individual personal savings and other state benefits in addition to the pension.

I will focus first on auto-enrolment. Under Labour, members of the public increasingly just could not afford to save for their retirement—either that, or Gordon Brown’s famous tax raid on pension pots simply made it not worthwhile to save for a pension. If we look at the data, during the 2000s private sector pension membership declined. In the year 2000, 47% of people had private pensions, but by 2012 that had fallen to 32%—a decline of 47%. By changing from an opt-in to an opt-out system, auto-enrolment, brought in by the Conservative-led Government, transformed pension saving in this country. In my view, it was perhaps the single most important intervention of Government policy over the past decade.

The figures speak for themselves: now, 75% of employees are regularly saving and benefiting from tax-free employer contributions. I used to be an employer before coming to this place, and I employed hundreds of very young people—typically 18 to 25-year-olds. We had a company pension scheme and, as a responsible employer, I tried to persuade them to start pensions, but the take-up was very low. The impact of the change to auto-enrolment was amazing, and that has been backed up by our company contributions. It is a wholly beneficial thing and it has reversed the roles.

The other point worth making is that this is Conservative values in action. Not for us the state’s putting its arms around people and being wholly responsible for individuals’ futures; we want to see people’s being helped to take responsibility for their own futures, with the state there to help the most vulnerable, and that is exactly what the Government have done in this case.

It has also been mentioned multiple times that the state pension was not a Labour idea; it was instigated by the Conservative-led Government. The right hon. Member for Leicester South (Jonathan Ashworth) is no longer in his place, but I sometimes wonder what conversations in the Treasury were like in 1999, when he was part of Gordon Brown’s inner circle. Presumably, the debate was, “Do we raise the pension by 75p or 50p, or shall we push the boat out and increase it by £1?” It is rich for the Labour party to start lecturing the Conservative Government, whose policy the triple lock actually is, given its own lamentable record on pensions. Labour has nothing to teach us here.

[Anthony Browne]

My hon. Friend has made some interesting points, and I think this debate has been useful to remind the Chamber that the triple lock is our policy. Given the point he has just made, and continuing the Christmas theme, does he agree that Labour attacking our track record on the state pension is a bit like Scrooge attacking Father Christmas for not being generous enough?

[Jerome Mayhew]

I will let that intervention speak for itself, but I entirely agree with the sentiment behind it.

Since 2010, because of the Conservative triple lock, pensions have increased by £2,300 in cash terms and by £720 in real terms. There will come a point when the triple lock will need to be reviewed; because of its statistical ratchet effect, there will come a time when we should properly remove the triple lock to maintain balance between the various cohorts of society. To date, however, it has been a powerful tool to raise pension values above those Labour lows in the 2000s that we have heard about.

In addition to the triple lock, Labour also ignored the problem of people’s—overwhelmingly women—child-rearing years not counting towards the state pension. I am delighted that, again, it was the Conservative Government who stood up for women and for the family and the importance of child-rearing, so that now raising a family counts towards the new state pension. More than 3 million will now be £550 better off as a result.

I have a minute and a half left, but I will not use it all, because others have set out the long list of additional benefits devised by the Government to assist with the cost of living crisis caused by the Russian invasion of Ukraine. We Conservatives recognise that pensioners are particularly vulnerable because they are on a fixed income, but there has been an additional £300 for winter fuel payments, the £400 discount on energy bills, £150 for affected council tax payments, and £650 additional means-tested support, as well as the additional payment for those with disabilities—and the list goes on.

On the triple lock, we will have to wait and see for nine more days, but even without it pensioners have been looked after by this Government. As the Prime Minister has repeatedly said, and as his record shows, all decisions taken by this Government will be compassionate and will look after the most vulnerable in society.