Labour’s state pension policy was thrown into confusion over the weekend after shadow chancellor Ed Balls said the party would include pensions in a proposed cap on welfare spending.
Both the Government and Labour are currently considering proposals to cap welfare spending.
In an interview with the BBC on Sunday, Balls said Labour planned to include pensions spending in its cap.
He said: “George Osborne is going to announce his cap in two weeks time. I don’t know whether he will exclude or include pensioners spending. At the moment our plan is to include it.”
Balls’ comments led to reports that Labour could scrap the state pension “triple lock” if elected. The triple lock guarantees the state pension will increase by the highest of earnings, prices and 2.5 per cent.
Balls used his Twitter account to deny the reports.
He said: “We committed to triple lock on state pension – got to monitor long-term pension spend – Tory reaction very rattled.”
Labour has previously said it wants to limit tax relief on pension contributions for those earning more than £150,000 to 20 per cent.
The idea, first unveiled by former chancellor Alistair Darling in 2009, would see tax relief fall by 1 per cent for every £1,000 earned over £150,000 up to £180,000.