In a bid to secure older voters’ support in the upcoming election, Chancellor Jeremy Hunt confirms the Conservative Party’s commitment to the pension triple lock, amidst broader economic and political developments.
Chancellor Jeremy Hunt has confirmed the Conservative Party’s commitment to retaining the pension triple lock, a move aimed at securing older voters’ support in the upcoming election. The triple lock mechanism ensures that state pensions increase annually by the highest of three metrics: wage growth, inflation, or a minimum of 2.5 percent. This declaration comes amidst discussions on the economic feasibility of the triple lock, with Hunt asserting confidence in economic growth to cover the associated costs. The Labour Party, represented by Anneliese Dodds, has expressed a commitment to the triple lock but has yet to detail their stance in their manifesto.
The announcement coincides with broader economic developments and political strategies as the UK faces improving economic indicators amidst a cost of living crisis. Inflation rates are falling, and retail sales are rising, suggesting a potential economic recovery. However, Prime Minister Rishi Sunak has opted to delay the general election, possibly waiting for a more favorable moment when voters can fully realise the economic benefits, despite current challenges including high consumer prices and the projected delayed recovery of living standards to pre-pandemic levels until 2025.
Furthermore, the Conservative Party faces scrutiny over potential backtracking on their pledge to eliminate ground rents for leasehold properties. Reports suggest that Michael Gove, the Levelling Up Secretary, is encountering resistance from investors and pension funds, leading to speculation about a compromise involving a £250 annual cap on ground rents. This development has sparked criticism from opponents and concern among those advocating for leasehold reform, with the Department for Levelling Up, Housing, and Communities indicating that reforms are on the horizon to address unregulated ground rents, amidst ongoing debate over the future of leasehold policies in the UK.
