Labour’s Pensions Minister Torsten Bell has refused to rule out an overhaul to the state pension and believes a review needs to be “as broad as possible”.
Speaking at the Pensions and Lifetime Savings Association (PLSA) conference in Edinburgh, Bell refused to rule out including the state pension in the second part of the Government’s pensions review.
Despite this, he has separately confirmed he has no plans to scrap the triple lock or introduce means-testing for pensioners.
Bell emphasised that any review must consider both state and private pensions together.
“There is no way to consider adequacy [the amount people are saving towards their pension] that doesn’t integrate thinking about both state and private pensions,” he told conference attendees.
Do you have a money story you’d like to share? Get in touch by emailing [email protected].
The minister has suggested a review of the state pension is needed
GETTY
He acknowledged the vital importance of the state pension, noting it is “relied on by an increasingly large number of people”.
Speaking to The i Paper at the Edinburgh conference, Bell dismissed the idea of means-testing the state pension.
“No, only Kemi Badenoch thinks that’s a good idea,” he stated.
When asked specifically whether reforming or abandoning the triple lock was being considered, as is happening on the Isle of Man, Bell’s response was a simple “no.”
This comes amid ongoing debate about the sustainability of the triple-lock, which was introduced in 2010. Currently, the full new state pension is worth £221.20 per week, equivalent to £11,502 per year.
Under the triple lock guarantee, which ensures pensions rise by the highest of inflation, average earnings, or 2.5 per cent, this will increase in April.
Pensioners will see a 4.1 per cent rise, taking the weekly payment to £230.30. This will bring the annual state pension to £11,975 per year.
The triple-lock has been a cornerstone of pension policy since its introduction by the coalition Government in 2010.
Bell warned that tough decisions on pensions may be necessary, stating bluntly: “The country’s in a hole, and the public are really fed up.”
He rejected calls for an all-party commission, insisting the current Labour Government must find solutions.
LATEST DEVELOPMENTS:
Britons are being warned the state pension could look different once they reach retirement
GETTY
“Our job is to take some sometimes difficult decisions to make sure we can start doing the basics again, an economy that grows, wages that rise, public services that function,” he said.
Bell defended recent tax decisions as necessary despite perceived risks. “I’ll tell you what the economic risk is, us not doing these things,” he warned.
“Every Saturday people are saying to me, this needs to be sorted, and if we don’t sort it, their faith in mainstream politics is being undermined.
“Otherwise you will all be saying to me in 10 years time, how come people are voting for mad people? And the answer will be, because we didn’t deliver the change that was needed.”