State pension threat Rachel Reeves guru says axe bonkers triple lock | Personal Finance | Finance

The triple lock has long been a target for critics, and now it’s under attack yet again.

Lord Jim O’Neill, a former Treasury minister who has worked as an adviser to Rachel Reeves, yesterday called the policy “bonkers” and urged the Chancellor to scrap it.

His timing is ominous, as Reeves prepares to deliver her Spring Statement on Wednesday amid mounting economic pressures.

The Chancellor is desperately hunting around for ways to cut spending in a bid to balance the books and avoid breaking her own fiscal rules.

She also needs to raise the funds to cover increased spending on defence as US President Donald Trump pulls support for Ukraine.

Yet pensioners will feel they are being unfairly targeted again.

The Chancellor has already hit them hard by slashing the Winter Fuel Payment for 10million, saving £1.5billion a year.

As I wrote yesterday, freezing the personal allowance until at least 2028 will force pensioners to pay income tax even if they are below the minimum required standard of living.

Labour is also debating whether it should bring forward an increase in the state pension age.

Last week it unveiled £5billion worth of controversial cuts for the disabled. Now pensioners are back on the front line.

The triple lock guarantees that the state pension rises each year either by inflation, earnings or 2.5%, whichever is highest.

Critics have called for the inflation and 2.5% elements to be scrapped, so increases are linked purely to earnings, to keep it affordable.

The latest attack comes from a worrying source.

O’Neill said that unless Reeves abandons Labour’s commitment to the triple lock it could cripple her ability to manage the economy, according to a report in The Independent.

He warned she has “hemmed herself in” by by ruling out major tax increases on Wednesday despite the worsening outlook.

Both Labour and the Conservatives fought the 2024 election promising to maintain the triple look for the lifetime of the current Parliament.

So could Reeves go back on her promise?

Targeting the triple lock would be massively unpopular. Reeves has repeatedly signalled that she is willing to make difficult to decisions, but this is a huge step.

Twelve million pensioners may never forgive her.

Given that pensioners are least likely to vote Labour, she might press on anyway.

The triple lock has lifted millions out of poverty since being launched in 2011. Pensioners won’t accept its loss without a fight.

After decades of working and contributing, they will be furious at finding themselves under attack.

The Daily Express has rallied to the defence of the triple lock before, and will do so again. Even if Reeves holds back on Wednesday, the threat isn’t going away.