On Monday 15 November, MPs debated the Lords Amendments to the Social Security (Uprating of Benefits) Bill. Stephen spoke in the House of Commons on the value of the state pension.
The Government made a manifesto commitment in 2019 to maintain the triple lock, under which pensions rise each year in line with average earnings, inflation, or by 2.5% - whichever is higher. However, the Government has since introduced legislation to disapply the triple lock for the financial year 2022/23. It has cited the forecasted 8% rise in average earnings as the reason for this.
The House of Lords amendment to the Social Security (Up-Rating of Benefits) Bill would have reinstated the triple lock, which the Bill has made redundant. The Lords amendment would have allowed the Government to adjust the earnings-linked increase to account for the aftershock of Covid-19.
Stephen backed the amendment, but it was voted down by the Government.
Speaking in the debate, Stephen said “It is quite likely, depending on the increases in prices and earnings next year, that the state pension will never catch up with earnings in the future, unless there is a catch-up initiative of some kind…if there is not, then that will be contrary to the Government’s long-held intention that the state pension should at least keep track with earnings.”
You can watch Stephen’s full speech below.