State Pension Triple Lock

Tonia Antoniazzi Excerpts

Tuesday 8th November 2022 Commons Chamber

[Tonia Antoniazzi (Gower) (Lab)]

Like so many of my colleagues, I have been overwhelmed by the number of constituents who have been in touch with me over the past few weeks. They are terrified about the consequences of the triple lock being scrapped—terrified because of what they are reading in the newspapers. One article in The Times today says that the Bank will raise interest rates again. Another article tells us that food price inflation will cost shoppers another £682 a year. Such headlines should be taken very seriously.

The cost of living crisis and soaring inflation are pushing food and energy prices to unprecedented highs. The decision to suspend the triple lock last year cost someone on the full new state pension £487 a year, and someone on the full basic state pension £373 a year. With inflation set to exceed 8% this year, pensioners are already facing a significant real-terms fall in income. We do not need a crystal ball to see where this is headed: the most vulnerable pensioners look to be plunged further into poverty.

The Cabinet seem to have wiped their memories of their involvement in the previous Government, and indeed in the Governments of the past 12 years, but let me remind them of the fact that it is not only the disastrous mini-Budget of a few weeks ago that has brought us here, but pensioner poverty, which has been rising for a decade.

[Anthony Browne]

The hon. Member said that it was terrifying that we may not have the triple lock. I agree that it is terrifying not implementing a Conservative policy. She said that she wanted to remind the Government of what has happened. Let me remind the Labour party, which has been criticising Government policy, that we have systematically, over the past 12 years, had a far more generous state policy scheme than we had under 13 years of the last Labour Government, when we only had inflation or 2.5%, and we never had the triple lock.

[Tonia Antoniazzi]

The hon. Member’s intervention misses the point by quite a margin, because pensioner poverty has been on the rise regardless.

The promise of this society is that we support everyone not just to survive, but to thrive. The Government seem to believe that pensions are some sort of nice extra, but that is not the case. The UK’s state pension, which is one of the least generous in the developed world, is seen as something for which pensioners should be grateful. No, they should not be grateful, because they have paid into it.

The audacity of the Government is clear. In the midst of a cost of living crisis, the like of which we have not seen for decades, they turn around to people who have paid their taxes and earned a decent retirement and tell them that, instead of the state supporting them in their retirement, they will plunge them into poverty. Breaking the 2019 Tory manifesto commitment to the triple lock for the second year in a row will leave more than 18,000 pensioners in Gower, on average, £905 worse off. Those are the statistics for my constituents.

When my constituents write to me asking how they will pay their bills this winter, how they will put food on the table, and why they are paying the price for Tory economic incompetence, what would the Minister tell them and what would she have me tell them?

[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.