A GUARANTEE that the state pension will rise by at least 2.5 per cent a year is to be dropped by the Conservatives the election manifesto has revealed.

State pension triple-lock AXED: Everything you need to know about Tory pension policy

The so-called triple lock means the payout rises by the higher of average wages, inflation or 2.5 per cent.

But the Conservatives have confirmed the 2.5 per cent will be dropped after 2020.

Tom McPhail, head of policy at Hargreaves Lansdown, said: “This is largely what we expected.

“The Triple Lock has largely done its job in improving pensioner incomes in recent years and protecting the retired population from the effects of the post 2008 recession.

“A double lock still provides a more robust level of security than is enjoyed by the majority of the working population.”

The Conservatives have also confirmed the state pension will continue to rise as planned.

In contrast Labour has promised to keep the triple-lock in place as part of their manifestos, and scrap state pension age rises, which are scheduled for 2026 and 2044.

The Tories have also promised to provide free care for people with less than £100,000 in assets.

However, people who receive care in their home will be subject to a means test, which will include the value of their home for the first time.

The £72,000 cap on care costs will also be scrapped and the party led by Theresa May is also set to introduce means-testing for the winter fuel allowance.

Steve Webb, director of policy at Royal London, said: “If these changes are implemented, more families will be at risk of seeing a large part of the value of their home wiped out by care costs later in life.

“Without an overall cap on care costs, those who need care for a long period of time could see more than half the value of their home taken by care bills.

“Paying for care looks set to become a regional lottery.”

Other pension promises from the Conservatives include, a commitment to bring the self-employed into auto-enrolment and more powers for the Pension Regulator to protect workplace savings scheme.

Posted on; Express.co.uk>>

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