Rishi Sunak Announces ‘Triple Lock Plus’ Pension Plan

Prime Minister Rishi Sunak has unveiled a new policy titled “Triple Lock Plus” aimed at raising pensioners’ income tax-free allowances if the Conservatives win the general election. This pledge, announced on Monday, May 27, 2024, promises to adjust the income tax personal allowance for pensioners by the highest of either earnings, wages, or 2.5% from April next year.

The “Triple Lock Plus” policy, projected to cost £2.4 billion annually by 2029-30, will ensure the state pension and pensioners’ tax-free allowance remain aligned with significant economic indicators. To cover the expenses, the Conservatives plan to generate an additional £6 billion per year by combating tax avoidance and evasion.

The announcement seeks to bolster support among older voters, a demographic showing reduced backing for the Tories amid growing popularity for Labour, reflected in a recent Techne UK survey. Sunak’s appearance on the TV show Loose Women highlighted the political friction, with the Prime Minister defending his stance on pensioners.

Labour has criticized the move, with shadow paymaster general Jonathan Ashworth questioning the Conservative Party’s economic credibility. In contrast, Sunak emphasized that their proposal aims to ensure pensioners are not subjected to income tax, unlike Labour’s approach.