Andy Burnham vows to end pensions triple lock to pay for free social care
The PM says he will scrap the pensions triple lock to help pay for his new social care service - and announced a review into whether Britain’s current voting system is fit for purpose
Andy Burnham has vowed to scrap the triple lock in its current form in 2030 to pay for his plans for free social care for the elderly.
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He told delegates at the Labour Party conference today that "in April 2030, we will adjust it."
Speaking from Liverpool, Burnham said that from 2030 the state pension will become a double lock, rising in line every year in line with prices or 2.5 per cent.
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Setting out proposals, Burnham said he plans to end the current approach of raising it in line with wages.
The triple lock, as it stands, means the state pension increases annually by inflation, average wage growth, or 2.5% - whichever is highest.
Read more: What has Andy Burnham done as Prime Minister so far?
Mr Burnham said his plans would generate 'savings' that can be spent on his NHS-style social care system, which could cost up to £18 billion per year.
He also said that no-one who receives solely a state pension will have to pay income tax on it until 2030.
Income tax thresholds are frozen while pensions are rising — potentially dragging pensioners into the tax system for the first time as they will begin to earn over £12,570 from the state pension.
Announcing the policies he also paid tribute to his father Roy, who was in a care home before his death.
Mr Burnham said: “I won’t pretend some of this won’t be difficult. I accept I may pay a political price. But someone has to go through the pain barrier and rip the plaster off. It’s the leadership I promised you when I asked to be your leader.
“I’ll be honest, we promised in our manifesto to keep the triple lock unchanged throughout this Parliament. I will honour that promise. I will honour that promise and I will do more. That will take the state pension to a record high.
“From there, in April 2030, we will adjust it. The state pension will continue to rise every year at least by prices or 2.5%. And it will hold its value relative to earnings over time so that pensioners will always share in the rising prosperity of the nation.
“But this change will generate significant savings which we will use to build up our National Care Service. Some may not realise it but older people with nothing more than the state pension, or only a little more, can find themselves paying care changes today from that small income. Under my plan, this will no longer happen.”
He also said a “fundamental rethink” of the welfare system is needed to fund new opportunities for young people.
Too many young people are “drifting” towards the benefits system, he said.
He pointed to Alan Milburn’s review into the rising number of young people not in education, employment or training which is due imminently.
He reiterated Labour’s plans to change the education system with academic and technical pathways from 14 and offer work placements and apprenticeships, as well as reducing waiting times for young people needing mental health support.
“We will need a fundamental rethink of the welfare system to find the money for these opportunities upfront, and we will require young people to take up the help presented to them.”