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David Cameron pledges to 'protect' state pension | David Cameron pledges to 'protect' state pension |
(about 7 hours later) | |
The Conservatives will continue to use the "triple lock" to protect the basic state pension if they win the next election, David Cameron has said. | The Conservatives will continue to use the "triple lock" to protect the basic state pension if they win the next election, David Cameron has said. |
The lock guarantees the state pension will rise by whichever is highest - inflation, average earnings, or 2.5%. | |
The PM pledged to keep the lock during the 2015-2020 parliamentary term. | |
The Lib Dems and Labour have both supported the triple lock but have made no commitment about whether they would keep it after the next election. | |
The triple lock was introduced by the coalition and means many pensions have risen by about £15 per week since 2010, | |
Mr Cameron said: "I am determined to give people who have worked hard and done the right thing during their working lives real security and peace of mind in retirement. | Mr Cameron said: "I am determined to give people who have worked hard and done the right thing during their working lives real security and peace of mind in retirement. |
"We are only able do this because we are taking the difficult decisions to tackle the deficit and put our economy back on the right path." | "We are only able do this because we are taking the difficult decisions to tackle the deficit and put our economy back on the right path." |
Rising pension age | |
In an interview with the Sunday Times, the PM said the promise to protect pensions was "the first plank of the next general election manifesto". | |
He said he had also made "difficult decisions" on the state pension age. | |
Chancellor George Osborne announced in his Autumn Statement that the state pension age would increase to 68 in the mid-2030s and to 69 in the late 2040s. | Chancellor George Osborne announced in his Autumn Statement that the state pension age would increase to 68 in the mid-2030s and to 69 in the late 2040s. |
It will rise to 66 by 2020 and to 67 between 2026 and 2028. | |
"People know you can only afford to pay [a] decent pension if you have a sustainable pension system," Mr Cameron told the newspaper. | |
"People aren't stupid - they know that you can only pay a decent state pension if you take tough, difficult, long-term decisions." | |
'Properly valued' | |
Mr Cameron has previously faced criticism - including from senior Conservative cabinet members - for sticking to a 2010 election promise not to cut benefits for the elderly. | Mr Cameron has previously faced criticism - including from senior Conservative cabinet members - for sticking to a 2010 election promise not to cut benefits for the elderly. |
But Paul Green from Saga, which specialises in products and services for the over-50s, said: "David Cameron's commitment to the triple lock for the state pension will be warmly welcomed by British pensioners, giving them confidence that their lifetime of work will be properly valued by society." | But Paul Green from Saga, which specialises in products and services for the over-50s, said: "David Cameron's commitment to the triple lock for the state pension will be warmly welcomed by British pensioners, giving them confidence that their lifetime of work will be properly valued by society." |
The triple lock has already helped protect pensioners' incomes at a time when earnings growth has been low. | The triple lock has already helped protect pensioners' incomes at a time when earnings growth has been low. |
As a result, the basic state pension will be about £440 a year higher from next April than it would have been if it had been uprated in line with average earnings since 2011-12. | As a result, the basic state pension will be about £440 a year higher from next April than it would have been if it had been uprated in line with average earnings since 2011-12. |
The triple lock meant the basic state pension rose by 5.2% in 2012, or £5.30 a week - the largest cash rise ever seen. | The triple lock meant the basic state pension rose by 5.2% in 2012, or £5.30 a week - the largest cash rise ever seen. |
In April 2013, it rose by £2.70 to £110.15 a week - a rise of 2.5%, which was higher than either earnings or inflation. | In April 2013, it rose by £2.70 to £110.15 a week - a rise of 2.5%, which was higher than either earnings or inflation. |
'Privileged few' | |
Mr Cameron also told the Sunday Times he was "a low-tax Conservative" and hinted that a further reduction in the 45p top rate of income tax had not been ruled out. | |
The government's previous cut from 50p to 45p on earnings over £150,000 was portrayed by Labour leader Ed Miliband as a "tax cut for millionaires". | |
"Tax rates should be set to raise money, not to send messages," Mr Cameron told the newspaper. | |
"If people can bring forward arguments about how to maximise the revenue from the top rate of tax, I'm always interested to read them." | |
In response, shadow chief secretary to the Treasury Chris Leslie said: "While ordinary families are facing a cost-of-living crisis it seems David Cameron wants to give people earning over £150,000 yet another tax cut. | |
"Working people are on average £1,600 a year worse off since the Tories came to office. But once again this prime minister seems determined to be on the side of the privileged few." |