Pensions Secretary hints triple lock pledge could be pushed back

ministers have given strongest indication yet that they have abandoned a manifesto pledge to scrap the pensions triple lock as the Government comes under mounting pressure to ease off on its austerity agenda in the wake of the election.
The new DWP Secretary David GaukeThe new DWP Secretary David Gauke
The new DWP Secretary David Gauke

A promise to ditch the costly scheme by 2020 was among a number of high profile pledges left out of this week’s Queen’s Speech, as the Tories were accused of shelving some of the most contentious policies from the campaign.

The new Pensions Secretary David Gauke has now hinted the timescale for replacing the triple lock with a cheaper double lock could be pushed back indefinitely while the party “reflects” on the message sent by the electorate on June 8.

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He also did not rule out an end to the public sector pay cap – a move that has cross-party support – but repeated warnings that the Government must continue its efforts to drive down the national debt.

The admission comes as talks between the Conservatives and DUP continue, two weeks after Theresa May learnt she had failed to secure an absolute majority in the Commons.

Pressure to appease the anti-austerity DUP is widely believed to have been a key factor in the decision to leave several policies out of Wednesday’s speech, including plans to restrict winter fuel payment.

However, the decision is also seen as a response to a growing consensus among Conservative MPs that the election result was an sign of the country’s “weariness” at years of austerity.

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A number of senior ministers have since claimed they are “listening” to what voters said, and are “reflecting” on policy ahead of the Autumn Budget.

Pressed by journalists as to whether this means a change in plans for the triple lock, Mr Gauke yesterday refused to confirm whether or not the 2020 deadline for abandoning the scheme is still in place.

While he argued that there is still a need to tackle the “ratcheting” costs of the guarantee, when discussing the timescale he said only that he “cannot see” the scheme remaining in place “in 10, 20 [or] 30 years time”.

He was also quizzed on whether the government was open to lifting the one percent pay cap for public sector workers – a policy that has the support of a number of Tory MP, including Shipley’s Philip Davies.

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He stated that the country “continues to face a pretty difficult fiscal situation”, but went on to say that ministers “will need to reflect” on how they proceed with austerity in light of the election.

“I think in terms of our response.... as the Chancellor has said we will listen to the sentiment of the British people,” he said.

“But I don’t think anyone should feel that the debt and deficit are issues that are no longer relevant, because they are.”

The former Treasury Secretary was more explicit in rejecting calls to end the welfare freeze. telling reporters that long-term inflation forecasts mean it is likely that the freeze will “continue”.

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And asked whether the country can expect to see any other major welfare changes in the coming years, he claimed he is currently focussed on implementing the universal credit scheme.

“This is a time for implementation rather than putting out lots of new ideas that need to be implemented,” he said.

“I believe delivering universal credit is an opportunity to make a massive difference to a lot of people’s lives... we need to get it right.”