Tory Theresa gets tough on pensioners.

THERESA May will end the triple lock on pensions and use the money saved to help younger workers instead.

It will be one of the most controversial parts of the Tory election manifesto being unveiled by the PM.

She will scrap a system that has seen OAPs’ cash shoot up for seven years.

Under it, the state pension rises by the rate of inflation, average earnings or 2.5 per cent a year – whichever is the highest.

The move – introduced by former Tory PM David Cameron in 2010 – has increased payments by £1,100 annually, while working age Brits’ pay has flat-lined since the financial crash in 2008.

Theresa May,  is set for a large majority according to the polls

Now that pensioners are more comfortable, Mrs May will insist it is time the nation tackles the growing gap in wealth between the generations.

She is expected to argue that pensioners’ income is now on average £20 a week higher than working age Brits.

But as both Labour and the Lib Dems have already committed to keeping the Triple Lock, the PM’s bold move will ignite a furious row.

A senior Tory source said: “Scrapping the Triple Lock will cause us some pain, but it is the right thing to do for the country.

“Theresa is confident that she can persuade people about that, and most people agree we need to rebalance between the generations.”

In another controversial move, Mrs May will also scrap the Tories’ tax lock.

Introduced two years ago by her predecessor Mr Cameron, the law forbids the government from raising income tax, VAT or national insurance contributions.

But the PM has already ruled out hiking VAT and will again today recommit to the Tories income tax cuts promises from the 2015 election.

That leaves Chancellor Philip Hammond free to raise NICs, and make another attempt to hike the hated tax on self-employed – the tax raid on White Van Man he was forced to abandon after the Budget in March.

But Mrs May will carry on with the party’s promise to raise the basic rate income tax free personal allowance to £12,500 and the higher-rate to £50,000 by 2020.

Planned Corporation Tax cuts will also stay, moving from today’s 19% rate down to 17% in 2020.

The Tories manifesto will also:

See also ;

About henry tapper

Founder of the Pension PlayPen,, partner of Stella, father of Olly . I am the Pension Plowman
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2 Responses to Tory Theresa gets tough on pensioners.

  1. ancientllm says:

    So the reason why the Tories say Labour’s plans don’t add up is to divert attention from the fact that the Tory’s tax and spending plans wouldn’t pass a year 3 SATS arithmetic test! No wonder they need to screw their loyal pensioner followers!

    But they won’t use the money to support the young, they’ve already reduced that and aren’t increasing it again. It’s to fund the tax cuts for the rich and businesses. And presumably to fund building workhouses……

  2. George Kirrin says:

    I appreciate the link is to The Sun, Henry, but language like “shoot up” is hardly appropriate when it comes to pensions increases.

    For starters, state pensions start from a low base, while inflation experienced by the elderly among us bears little resemblance to RPI or CPI.

    And don’t start me on executive pay, where ideas of “shooting” take on an altogether different meaning!

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