State Pension Triple-Lock: Very good news that
the uncertainty for pensioners is over. The Chancellor has
confirmed the full 8.5% ‘triple lock’ earnings uprating promise
for next year’s State Pension.
It would have been very wrong to remove pensioner protection
again, after breaking that Manifesto Commitment two years ago.
Millions of pensioners (especially women) rely on their State
Pensions to make ends meet. Inflation may have halved but is
still high. Forecasts that it will fall further are just that,
forecasts. Pensioners must not be left out if inflation resurges,
as the announced increase will run until April 2025.
That is not to say the triple lock pledge in future is the best
policy option for pensioner protection. The reality and
complexity of our pension system mean it has achieved its
original purpose of restoring State Pensions post-1980s losses
relative to the rest of society but, in actuallity, it gives
lower increases to the oldest and poorest pensioners which is not
just. I believe a comprehensive, cross-party review of
State Pension uprating is needed, investigating better ways to
control costs rather than just scrapping the triple lock.
important reforms for UK pensions: The
Chancellor’s Autumn Statement also announced important reforms
for UK pensions. Using pension assets to boost domestic
growth, as well as backing British companies, are all important
measures for our country’s post pandemic and post Brexit future.
Measures to improve supply-side by supporting entrepreneurs,
cutting business taxes, bringing in foreign direct investment and
backing future technologies, are all welcome measures.
Despite disappointment about the absence of widely-anticipated
measures to ensure ISA savers do more to back British growth, the
Chancellor clearly intends to direct more taxpayer funding into
UK start-ups and small businesses from pension investors. This is
a welcome change which takes the opportunity to direct pension
funds into domestic assets, rather than potentially all being
invested abroad. At a time when boosting sustainable growth and
reviving British financial markets are so important, this is good
news.
The Chancellor’s announcements to establish special Growth Funds,
Long-Term Asset Funds and other collective asset pools that will
allow pension investors to directly support growth and the new
technologies of the future, were confirmed. The funds will mean
pension investors can diversify into these types of investments,
taking advantage of specialist expertise and scale which they may
not individually have.
Overall, the Autumn Statement could bring better incomes in
future from both State and Private pensions. Britain’s pension
system was once the envy of the world – perhaps these measures
can pave the way for future reforms to restore such former glory.
