UK POLITICS: Manifesto: After 2020 Tory Will End Triple Lock Pension

Politicoscope
By Politicoscope May 18, 2017 14:17

POLITICS HOME: Current Political Article


Ahead of a June 8 election, Theresa May said the double lock would mean pensions would rise in line with earnings or inflation, whichever was highest.

Continue below with the full current political topic.

UK POLITICS: Manifesto: After 2020 Tory Will End Triple Lock Pension

A new Conservative government would scrap the triple lock pension system when it expires in 2020, replacing it with a new double lock, Prime Minister Theresa May confirmed announcing the party manifesto today.

In a list of policy pledges ahead of a June 8 election, May said the double lock would mean pensions would rise in line with earnings or inflation, whichever was highest.

The removal of the triple lock was expected to be included in the Tory manifesto, as Theresa May has repeatedly refused to comment on the matter.

Pension experts have previously raised concerns that the UK cannot afford to keep the triple lock in place and to do so would force the government to compensate by raising taxes in other areas.

The Liberal Democrats and Labour party have vowed to keep the pension triple lock if either win a majority on June 8.

Responding to the announcement, Tom Selby, senior analyst at AJ Bell, said the changes, in addition to Conservative plans to cap social care costs at £72,000 for pensioners abroad, meant consumers will need to reply more on private savings.

“The bottom line is that the triple lock is an expensive policy and Theresa May has clearly sounded its death knell. Office for Budget Responsibility projections suggest retaining the triple-lock could cost £15bn more than earnings indexation by 2060,” he said.

“A double lock of inflation or earnings after 2020 will still ensure the state pension at least increases in line with the cost of living.”

Selby added: “The reversal of the plans to put a £72,000 cap on social care costs means more people will have to pay more for long term care. The proposed £100,000 capital floor below which assets will be protected will include people’s houses and we are a nation of homeowners. This means large numbers of people are going to have to make their own arrangements to fund long term care or defer payment until their death.”

But Dr Craig Berry, deputy director of the Sheffield Political Economy Research Institute at the University of Sheffield, said the biggest losers from the change are not existing pensioners but young people.

“The impact of the triple lock is far too often discussed in terms of the incomes of existing pensioners – even by its supporters in the Labour Party and Liberal Democrats. But, overwhelmingly, young people are the main beneficiaries of the triple lock,” he said.

“The policy nudges the value of the state pension up slowly but surely, compensating for the financial volatility young savers are expected to confront in coming decades as they seek to save for a pension privately.”

Tory manifesto: Seven ways Theresa May wants to change Britain
The Tories are launching their manifesto today and wealthy pensioners are among those set to lose out if Theresa May stays on as Prime Minister.

Following on from the Labour and Lib Dem manifestos unveiled this week, the Conservatives have announced major plans to scrap various benefits, a move that could anger parents and elderly voters.

The plans are set out in a manifesto called Forward, Together, which the Prime Minister described as a “declaration of intent” to tackle the “great challenges of our time”.

Here are seven ways Mrs May plans to change Britain if the Tories win on June 8…

Winter fuel payments
Wealthy pensioners are set to lose up to £300 in winter fuel payments. Currently worth between £100 and £300, the universal benefit to all pensioners will instead be means-tested and specifically targeted at the least well-off pensioners. Those with more money will lose out on the perk – a move that will potentially cost the Tories some of the so-called ‘grey vote’.

Elderly paying for care in their own homes
The Tories plan to force more elderly people to pay to be looked after in their own homes, in an attempt to tackle the social care funding crisis. Protection will be offered for people with assets of £100,000 or less, a dramatic increase from the current £23,250 level in England. In order to make the system sustainable, the value of someone’s property will now be included in the means test for care in their own home, meaning more people will be liable to contribute to the cost of being looked after. Tories say this will allow elderly people to retain more of their wealth or pass it on to their families.

Scrapping of triple lock on pensions
Mrs May will risk further angering older voters by scrapping the triple-lock on the state pension, which guarantees it rises by the highest of average earnings, inflation or 2.5%. She will also ditch the “tax lock” introduced by David Cameron which forbids the Tories from raising income tax, VAT or national insurance contributions – leaving her more wriggle room in future Budgets.

Scrapping universal free school lunches for infant pupils in England
Currently any infant pupil in England is entitled to free school lunches, a measure introduced by the Coalition government. However, that is set to come to an end if the Tories win power in June. Instead, primary school pupils – which covers a wider age range – will be offered a free breakfast. The policy will save around £650 a year per pupil, which will be used to increase schools funding by roughly £4 billion over the next five years.

Cheaper energy bills
The PM has promised a cap on rip-off energy bills. The cap, on standard variable tariffs, will save some households up to £100 a year. The rate would be set by the regulator Ofgem every six months in order to prevent it from limiting competition in the market. It would also target people who are less likely to switch, and over-priced as a result.

More charges on employing foreign workers
The Tories will double the charge levied on firms employing migrants and increase the amount paid by migrant workers and international students to fund their use of the NHS. The “immigration skills charge” – levied on some firms employing migrant workers – will double to £2,000 a year per employee by 2022.

Workers’ rights to care for a relative
Workers will be given the right to request up to a year’s unpaid leave to care for a relative. There will be a third more people aged 85-plus in 2024 than there were in 2014, and the growth of long-term conditions such as dementia has been putting increasing pressure on the social care system which can subsequently have knock-on effects on the NHS by putting strain on hospitals. The Tories want to improve co-operation between the NHS and care system, preventing unnecessary hospital stays and making better use of technology and specialist housing to help people keep their independence.

Related Political Articles

UK POLITICS: No ‘Mayism’: Theresa May Says, Launches Manifesto Prime Minister Theresa May rejected "untrammelled free markets" and promised to rein in corporate excesses in pre-election pledges on Thursday designed to woo not only her core supporters but also those of her left-wing rivals.With surveys sugges...
UK POLITICS: Rattled Theresa May Faces Accusations of Dishonesty A rattled Theresa May is facing damaging accusations of dishonesty after her humiliating U-turn on "dementia tax" left the Conservative election campaign in disarray.In an evasive TV interview, the Prime Minister was asked three times why she was...
UK POLITICS: 2017 Election: Theresa May Biggest Misstep British Prime Minister Theresa May made a public climbdown on Monday over plans to force elderly people to pay more for their social care, after her governing Conservative Party's opinion poll lead halved in the run-up to a national election.In h...
Search for Authoritatively Bestsellers

– Yahoo

Stay up to date on top political headlines for "UK POLITICS: Manifesto: After 2020 Tory Will End Triple Lock Pension". Create alert.



Up Next on Politicoscope

Share this Article: "UK POLITICS: Manifesto: After 2020 Tory Will End Triple Lock Pension"


Since You’re Here, We Would Like to ask You for Help
There are more readers worldwide reading the Politicoscope daily news content than ever before. Unlike many other news media organisations that charge readers subscription fees for the same daily news content and features we offer you for free, we do not charge all our readers to pay any fee.
We strongly believe in free online news content.
We depend on online advertising to generate the revenues to fund all these great news content and other features provided without charge to our international readers. Currently, advertising revenues are quickly falling. We want to continue offering you daily news and other features, all for free. This is why we need your help.
"I visit Politicoscope everyday to read my daily news in world politics. I'm glad it's all for free. On my part, I'm happy to donate monthly so as to continue enjoying these free content because it's actually a small amount from me compared to paid subscriptions by other news organisations. I want to help Politicoscope grow more so that I and other readers can continue to have access to free daily online news." - Denise H., from LA, USA.
If everyone who reads our news content, likes it and helps to support it, our future would be much more secure. We can then focus to providing you always with the best: daily news content and other amazing features, all for free.
Like Denise H., LA, USA, who happens to be one of Politicoscope fans contributing amazingly so as to promote free online content, you can do it. No amount is too small. Help keep Politicoscope alive and grow stronger for you.

Donate




Since you’re here, we would like to ask you for a little favour.
There are more readers worldwide reading the Politicoscope daily news content than ever before. Unlike many other news media organisations that charge readers subscription fees for the same daily news content and features we offer you for free, we do not charge all our readers to pay any fee.
We strongly believe in free online news content.
We depend on online advertising to generate the revenues to fund all these great news content and other features provided without charge to our international readers. Currently, advertising revenues are quickly falling. We want to continue offering you daily news and other features, all for free. This is why we need your help.
"I visit Politicoscope everyday to read my daily news in world politics. I'm glad it's all for free. On my part, I'm happy to donate monthly so as to continue enjoying these free content because it's actually a small amount from me compared to paid subscriptions by other news organisations. I want to help Politicoscope grow more so that I and other readers can continue to have access to free daily online news." - Denise H., from LA, USA.
If everyone who reads our news content, likes it and helps to support it, our future would be much more secure. We can then focus to providing you always with the best: daily news content and other amazing features, all for free.
Like Denise H., LA, USA, who happens to be one of Politicoscope fans contributing amazingly so as to promote free online content, you can do it. No amount is too small. Help keep Politicoscope alive and grow stronger for you.

Donate



Politicoscope
By Politicoscope May 18, 2017 14:17

Don't Miss


What's on Your Mind?