Pensions experts say Conservative plans to reduce the generosity of the state pension are a risk, but widely anticipated.
The party's manifesto proposes ditching the "triple lock", in which the pension is raised in line with the highest of average earnings, prices or 2.5%. From 2020, its plan is to cut the 2.5% element, to leave a "double lock". Labour and the Liberal Democrats have vowed to maintain the triple lock throughout the next Parliament. The demise of the triple lock under Conservative plans has long been predicted. However, many pensions commentators say it is political considerations that have determined the timing. Hugh Nolan, president of the Society of Pension Professionals, said: "Pensioners have been the main beneficiaries of political tinkering with pensions and benefits recently, reflecting the power of the grey vote over unregistered youngsters."
Richard Parkin head of pensions policy at Fidelity International, said that Theresa May was using "a strong lead in the opinion polls to kill some of the sacred cows of Tory policy for the elderly". Darren Redmayne, chief executive of Lincoln Pensions, said it was a brave decision to water down the policy alongside changes to social care contributions and winter fuel payment cuts.
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