The state pension triple lock will not be scrapped by the Labour Government despite calls to means-test payments, a senior Government minister has revealed.
Pensions Minister Torsten Bell has confirmed state pensions will be uprated throughout the current Parliament, potentially increasing them by up to £1,900 by the end of the term.
The commitment was made during a Treasury debate when Bell was questioned about fiscal steps to support pensioners with the cost of living.
Bell emphasised that raising state pensions is among the Government's "top priorities for pensioners" alongside rescuing the NHS, providing reassurance to millions of pensioners who have already seen their payments rise by 4.1 per cent this month.
The state pension triple lock will remain in place throughout Parliament, a senior minister has confirmed
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The 4.1 per cent increase under the triple lock took effect this week, benefiting more than 12 million pensioners across the country. Bell highlighted that this rise is "well ahead of inflation" and provides substantial financial support.
For those receiving the full new state pension, the increase is worth an extra £470 per year. Recipients of the full basic state pension will see their payments rise by £360 annually.
The triple lock ensures payments rise by either inflation, average wages or 2.5 per cent; whichever is highest. Industry experts previously expressed relief that the Government maintained the triple lock following the Chancellor's Spring Statement.
During the debate, Bell confirmed the Government's commitment to uprating pensions beyond just this year. "We are not just increasing pensions above the rate of inflation this year but doing so throughout the current parliament," he stated.
Labour's new pension minister has committed to the triple lock GETTY The minister reiterated Labour's promise to protect the triple lock, which is expected to increase spending on state pensions by around £31billion.
Bell cited that the Government is "absolutely committed to supporting pensioners and giving them the dignity and security they deserve in retirement."
Despite this pledge, pension industry experts have warned that retirement benefit increases could be a "double-edged sword" for some recipients.
As the state pension rises, more British pensioners are being pushed into tax-paying brackets for the first time due to the impact of fiscal drag.
AJ Bell director of public policy, Tom Selby, warned that the state pension is now "perilously" close to the frozen £12,570 personal allowance.
This means more pensioners may find themselves paying income tax on their pension income. In response to these tax concerns, Bell pointed out that the "vast majority" of pensioners were already income tax payers under the previous Government.
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Older Britons are worried about the future of the state pension triple lock PAHe noted that when individuals' wider income was taken into account in 2022/23, over 80 per cent of pensioners had an income exceeding the Personal Allowance Tax Threshold.
Despite this, Selby warned that the Government is "walking a precarious financial tightrope to balance its fiscal rules" with little room for manoeuvre.
He suggested that state pension spending could "move into the Treasury's crosshairs in the next few years" as the government seeks further savings.
"Any changes to the state pension will be hotly contested," Selby cautioned. He added that "crunch time is fast approaching" when the Government must address fundamental questions about what the state pension should offer.
