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PM warns of Brexit threat to pension triple lock

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David Cameron says the Government cannot guarantee protections for the state pension in the event of a Brexit.

Speaking on the Andrew Marr show this weekend, the Prime Minister said a vote to leave the EU could cause a “black hole” in the public finances, the BBC reports.

He warned the triple lock on state pensions – where payments rise by the higher of earnings, inflation or 2.5 per cent – could be under threat

He said: “Our pensions promise is based on a growing and succeeding economy.

He added: “All the experts… agree that if we leave the single market, if we cut ourselves off from the most important market, our economy would be smaller and that has consequences.

“We would be taking a risk with growth, with jobs and with pensions. We shouldn’t do that – it is the wrong choice.”

The Conservatives promised to extend the triple lock until 2020 in their 2015 manifesto.

However, Cameron quoted Institute for Fiscal Studies figures that predict Brexit would lead to a shortfall in the public finances of between £20bn and £40bn.

This would need to be “filled”, Cameron said, either by taxes, borrowing or spending cuts.

In May, the Treasury said private pension savings could see up to £2,000 wiped off their value in the event of Brexit.

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Comments

There are 14 comments at the moment, we would love to hear your opinion too.

  1. Neil Liversidge 13th June 2016 at 9:23 am

    The latest scare story. You’re obviously the one running scared Dave.

  2. Bethell Codrington 13th June 2016 at 10:01 am

    Who would ever trust this man ever again?
    Prepared to go back on anything he has said in the past.
    Time for him to go and the Conservatives elect a leader who believes in his country.

  3. I think it’s an excuse to do what he wanted to (and had to) do anyway. The Triple Lock is not sustainable, it would bankrupt us if it continued indefinitely. Article link below says it all.

    http://www.ft.com/cms/s/0/e344e79c-71af-11e5-9b9e-690fdae72044.html#axzz4BS2BPXDv

  4. Trevor Harrington 13th June 2016 at 11:05 am

    How dare he !

    They have already stolen 7 years state pension off my wife and 2 years state pension off me.
    They have also stolen both our SERPS benefits, and averaged us both down to £151 per week.

    I can understand that a lot of this was due to the massive overspend of Brown and Blair, but what really galls me is that Cameron casually ignores all this and then tries to frighten people into voting to stay in Europe, when the real culprit is various previous Governments overspend on Public Services pensions, including the Conservatives.

    Reducing the lifetime pension fund allowance to £800,000 (next year) is a start, but what about all the thousands of people in the public sector who have already gone out on massively expensive early retirement benefits?

    Quite obviously anybody who is already on more than a £40,000 per year public sector pension, especially those who have retired early on spurious and criminal ill health claims, need to look very closely at the possibility that their pensions will need to be severely curtailed – and the sooner that happens the better.

    Nobody in the Public sector should be on a pension of more than £40,000 per annum, and anybody who is in receipt of an early pension on the grounds of ill health, should be medically reviewed each year.

  5. It will be the start of a 5 year recession if we vote leave, make no mistake about that.
    Whatever anyone says we cannot afford to leave the EU.

  6. The triple lock will remain as long as Conservatives are in power and we remain in the EU. If one or both are ditched the triple lock goes. Why any IFA would vote Leave and recommend clients to vote Leave is beyond belief.

  7. Paul is not wrong.

    Triple lock or not. Sterling will be shorted, leading to higher prices. Most significantly it will be the end of the booze cruise! Wine and most other booze will be dearer (remember the 70’s when booze was relatively so expensive that home brewing was a major occupation).

    French, German, Italian and Spanish cars will all be more expensive. Look around your house and see how many things come from Europe – particularly in the kitchen. Go into any French, Spanish or Italian market today if you want to see how we are ripped off in our supermarkets as far as food prices are concerned. This will get worse after Brexit.

    Triple lock is supposition, the above is certainty. The result is the same – poorer pensioners as well as the rest of society.

    Anyway, in or out our economy is a basket case – look at debt, look at productivity. Read Neil Woodford and prepare to get depressed.

    On balance we will be a little less worse off if we stay in.

    As for our Government and potential government – how much better are they than those in Brussels. Tories? They are now a fragmented nonentity. Labour – you cannot be serious. So what have we got? Nothing and no one. So we may as well opt for Brussels.

  8. Can he guarantee the triple lock if we stay?
    Don’t buy the above point on the booze cruise – surely leaving would mean people travelling to France would get duty free again?

  9. @Tom Wilson

    Do you recall duty free? Have any concept of the parsimonious limits that were imposed and indeed arte imposed if you travel outside Europe? For all practical purposes there is no limit currently in what you can bring back. Under duty free it was usually one bottle of spirits each and a couple bottles of wine.

    I do try to stick to actual facts without speculating but I do get very wound up when the Leave lobby tries to tell me that black is white. That’s not to say that the Remain campaign haven’t come out with some tripe themselves, but although in the realms of hyperbole it does sound plausible when you think about it.

  10. Andy Robertson-Fox 13th June 2016 at 7:35 pm

    Of course there are some 400,000 UK pensioners currently living in the EU countries whose index linking to the State Retirement Pension is an EU legal requirement. Under Remain this annual increase and the other Social Security and Welfare arrangements will continue but there is no such guarantee with Brexıt.

  11. Trevor Harrington 13th June 2016 at 8:16 pm

    Simple ….
    If we were not members, and you were being asked to vote in order to join the EU ….
    Hopefully you would look around at it … see the chronic and huge waste of money in their socialist political dream, and their desire for the United Kingdom to help pay for the fiasco of the failed Euro currency unit …
    Then you might see the decimation of the North Sea fisheries …
    Then you might see that we are a much more valuable trading market to them than they are to us … they export eight times more to us than we export to them ….
    Then you might see the failing western economies of socialist Europe and you might compare them with the massively expansive Asian and economies ….
    Then you might see the 3 billion people of those Asian economies all wanting expertise, services, and products from us ….
    Then you might see that we are probably the fifth largest economy in the World, with historically strong and meaningful connections way beyond anything that the Germans or the French can even dream of ….
    Then you might see that the USA is still our largest export market … even to this day … even after 41 years of European Community trading ….
    Then you might see that we still do NOT have a trading agreement with the USA …. oh … and neither do the Europeans … and we do not want one (they just restrict business people trying to do business with eachother …

    THEN you might say …. If I do not want to join the European system …. whay would I vote to stay in it ….

    THEN you might consign most of the comments above to the dustbin … or the land of fairy tales and Harry Potter (nee Katz) ….. sorry Harry, but you are talking illogical tosh ….

  12. Can this man stoop any lower? Resorting to frightening and blackmailing seniors, his pensions claim flies in the face of warnings from the pensions industry that Remain poses the biggest risk to pensions as new EU financial rules will damage pension providers.

  13. We’ve heard these arguments twice in our recent history. Once, when joining the ERM and the other about joining the euro.

    The same Organisations, economists and experts were telling us, on both occasions, joining was essential. Staying apart, we were told, would lead to isolation, decline and recession. On both occasions, the “facts” and “evidence” were exposed as utter rubbish.

    Joining the ERM was supposed to create stability and growth (remember that Pact?). It created instability and recession. John Major was taking orders from Chancellor Kohl as to what remedial steps were permissible (sound familiar?). A decision to Leave led to strong growth, stability and political independence, ironically overseen by Chancellor Ken Clarke.

    We were then told very similar porkies about joining the euro. Most notably by the Big Business brigade. The CEO of Northern Foods was on TV constantly warning about the loss of FDI, a sterling crisis and becoming a economic backwater. All backed up again by the OECD, IMF, FT, CBI and Treasury. Same result.

    Perhaps that’s why NAFTA, ASEAN etc have decided not to implement a single currency or political Union? The EEC was a good thing for the UK, the EU most certainly is not.

    One of the key reasons why most older voters will be voting Leave is 40 years of being warned of disasters that simply don’t exist.

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