Kemi Badenoch backs costly triple lock pension as ‘Conservative policy’
Opposition leader Kemi Badenoch has doubled down in her backing of the triple lock pension after the UK’s fiscal watchdog said its costs on the state had soared far higher than expected.
The Office for Budget Responsibility (OBR) warned this week that the Labour government could not afford the triple lock pension along with other benefits for working-age Brits, with bills on the policy forecast to be three times higher by the end of the decade than initial estimates made in 2012.
In a speech delivered to the Centre for Social Justice, Badenoch defended the triple lock pension as a “Conservative policy”, referencing former Chancellor George Osborne’s decision to introduce it in 2012.
Answering a question on whether the Tories would consider scrapping tube policy, Badenoch said the party’s focus was on curbing working-age benefits.
“Those pensions are not working age benefits,” she said.
“If we get more people into work, that will help solve the general problem of growth. There are too many people who are out of work.”
Opposition MPs have also called on the government to end benefits for foreign nationals, which hit £1bn a month according to official figures.
Badenoch said the expenditure on foreign nationals was “straining the system”, adding that it was a starting point for the government in curbing health and disability benefits.
She also defended the previous government’s record in keeping welfare spending on working-age people in check, crediting former work and pensions secretary Ian Duncan-Smith for bringing welfare spending down, reducing unemployment and introducing Universal Credit
The assessment system for disability, Badenoch said, was not drawn up with the “intention” that people with ADHD or obesity were able to take up the motability scheme.
She said the UK had become a “welfare state with an economy attached”, blaming the Labour Party for making quick savings “in a rush” before a wider bill collapsed due to backbencher opposition.
“We need to think about what support actually helps people, because at its best, a welfare system acts like a trampoline.
“It cushions your fall and it propels you back onto your feet. It should not act like a giant net that engulfs you and makes it almost impossible to climb out.
City firms suggests change to triple lock pension
Badenoch backed a recent CSJ report suggesting that curbs on disability payments could save the government some £9bn, with the current system being a “ticking time bomb” for the UK economy.
“It is a fiscal disaster waiting to happen. It should have been clear to anyone seeing this that it isn’t sustainable.
“But the reason Labour have failed so badly on this over the last month is that they didn’t see these problems in opposition.”
City firm St James’s Place provided different options the government could consider to reform the state pension.
“If reform were to be considered, any proposal would need to ensure adequate support for those on the lowest incomes,” said Claire Trott, St James’s Place head of advice.
“Means testing is often raised as a solution, but in practice it’s unlikely to be pursued, given the cost and complexity of implementation outweighing the savings.
“There are other options such as freezing the state pension and increasing access to pension credit which might be a more pragmatic route – it’s already in place and better targeted to those who need help most.”