Sir Tony Blair’s think tank wants a cross-party agreement to scrap the triple lock (Image: PA)
Sir Tony Blair has been accused of “betraying pensioners” after his think tank urged the Government to scrap the “triple lock” on pensions. The anti-poverty safeguard ensures the state pension goes up by whichever is highest – increases in average earnings, inflation or 2.5%.
Campaigners blasted the ex-PM for pushing for its abolition when “food and energy prices are likely to spiral out of control”. The Tony Blair Institute for Global Change (TBI) argues the triple lock should be axed as the “first step” to “prevent the state pension rising faster than earnings growth”. It says the country should replace the state pension with a new “lifespan fund”.
This new system would allow people to bring forward some of their entitlement to get Government-backed support to retrain, change careers or take on caring roles.
The TBI predicts Britain’s pensioner population will soar from 12.6million today to nearly 19million by 2070, with state pension spending on course to cost “an extra £85billion in today’s terms”. Sir Tony’s think tank wants the re-established Pensions Commission to secure cross-party agreement before the next election so the triple lock can be “replaced from 2030 with a smoothed link to earnings”.
Dennis Reed, of campaign group Silver Voices, called for the TBI to “keep its nose out of domestic politics” and said scrapping the triple lock would be a “disaster for older people”.
He said: “The plans for a lifespan fund are a thinly veiled cover to weaken the state pension system and scrap the triple lock in the next Parliament.
“Millionaires like Tony Blair have no idea what it is like trying to survive on the basic old state pension of £185 per week, as they would casually blow that on a midweek meal out. Instead, they pick on a system which prevents more pensioners falling into abject poverty, at a time when food and energy prices are likely to spiral out of control.
“The triple lock is an essential safeguard to ensure the dignity and physical and mental health of older people in retirement. It must not be abolished until the state pension rises to a level which can meet the basic human requirements of enough food and warmth.”
Caroline Abrahams, charity director at Age UK, said the triple lock should be “retained into the next Parliament”.
She said: “Over time, this policy has rebuilt the value of the state pension, helping to improve the living standards of some of our poorest pensioners.
“Today, we continue to hear from older people who are struggling financially, and the extra money the triple lock delivers makes a meaningful difference to many lives.”
But Tom Smith, of the TBI, said: “We can’t keep pouring money into a system that is increasingly unaffordable. Pension spending must be contained, and that means the triple lock cannot continue after the next election.”
The think tank says the present “one-size-fits-all pension age” penalises those in poorer health. Under its plans, people would be able to “choose when to convert their lifespan fund into a guaranteed pension for life, with the annual amount adjusted on an actuarially fair basis to reflect age and health”.
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Reform UK MP Robert Jenrick – who would serve as Nigel Farage’s chancellor if the party wins the next election – accused Sir Tony of betraying pensioners.
He said: “The recent attacks on the triple lock by Labour and Tory grandees, like Tony Blair and Jeremy Hunt, are a disgraceful betrayal of pensioners who have worked hard and paid into the system all their lives.
“Pensioners did not squander billions on nonsense like foreign aid and hotels for migrants, and they shouldn’t be robbed of their pensions to pay for the money wasted by the two old parties.”
Former Conservative chancellor Sir Jeremy has said the Government should “absolutely” reconsider the triple lock, arguing the country is “funding the triple lock by increasing our national debt”.
Ex-Tory security minister Tom Tugendhat – who wants to see increased defence investment – has proposed changes to save £6billion a year by the end of the decade.
Jan Shortt, general secretary of the National Pensioners Convention, pushed back against the removal of the triple lock, saying: “The lifespan fund for future pensions has merit and it also has pitfalls. The NPC would rather see work being done to enhance the state pension rather than talk about taking away the triple lock.
“Today’s pensioners still struggle with energy and other costs of living – a much improved state pension would benefit them and future retirees.”
Reform has pledged to keep the triple lock but restore the two-child benefit cap (Image: Getty)
Morgan Vine, of Independent Age, said: “One in eight older people rely solely on the state pension and other financial entitlements. While it is not a perfect solution, the triple lock is essential for them for now.
“Many are eating just once a day, reducing how often they wash and not using the lights at night.”
A spokesperson for the Department for Work and Pensions said: “Supporting pensioners is a priority, and our commitment to the triple lock for the rest of this Parliament means millions of pensioners will see their yearly state pension rise by up to £2,100.
“The Pensions Commission is already examining how we can ensure secure retirements for tomorrow’s pensioners, and for those that have not reached state pension age but need extra support, a range of options such as Universal Credit and other means-tested and disability-related benefits are available.”