Government Performance against Fiscal Rules

Lord Willetts Excerpts

Tuesday 8th July 2025 Lords Chamber

[Lord Livermore (Lab)]

My noble friend is absolutely right. It is exactly because of the experience of the previous Government—that disastrous Liz Truss mini-Budget, which saw mortgage rates spiral and from which working people are still suffering higher mortgage payments—that it is so important that we maintain fiscal responsibility and why we absolutely continue to adhere to our fiscal rules.

[Lord Willetts (Con)]

My Lords, today’s OBR report shows that the cost of the pensions triple lock is running three times higher than previously forecast. It is costing over £10 billion a year, and we now know that pensioners, on average, enjoy higher living standards than working-age families. If tough decisions have to be taken to meet the fiscal rules, will the pensions triple lock be reviewed?

[Lord Livermore (Lab)]

I know that that is the policy of the noble Lord’s party; it is not the policy of this party. The OBR fiscal risks report talks about an ageing population and how that presents significant fiscal challenges in supporting pensioners. The landmark pensions review, in terms of delivering better outcomes for savers and strengthening the economy, is important in that regard.