General Election 2017: Pensions triple lock U-turn on the cards after Conservative tie-up with DUP

Oliver Gill
Follow Oliver
Stormont In Crisis After Deputy First Minister Resigns
Arlene Foster has been the leader of the Democratic Unionist Party (DUP) since December 2015 (Source: Getty)

The Conservative pledge to ditch the triple lock appears to be in tatters after Prime Minister Theresa May failed to win an overall majority in yesterday's General Election.

After falling short by a handful of seats, the Tories are understood to be thrashing out a deal with the DUP and its leader Arlene Foster to count on their support.

May is to visit the Queen this lunchtime to seek permission to form a government.

Read more: Hung parliament is "worst possible outcome" for pensioners

And Hargreaves Lansdown head of policy Tom McPhail said such a pact would see the Conservatives row back on one of its key pension pledges. He said:

The triple lock is undoubtedly here to stay until 2020 and possibly for longer now.

The triple lock, which guarantees state pensions rise at the highest of average earnings, inflation, or 2.5 per cent, was set to be dropped by the Conservatives from 2020. The move was not replicated but any of the other major parties.

"The DUP manifesto included commitments to the state pension triple lock and winter fuel payments, so it feels unlikely the Conservatives will try to push through with scrapping these," said associate director for personal investing at Fidelity Ed Monk.

Read more: Banks and asset managers expect Theresa May to resign

He added: “The hung parliament leaves no party with a mandate to deliver on its agenda for pensioners."

However, David Brooks, a technical director at Broadstone, warned a triple lock U-turn may be short-lived.

"For all this talk of the triple lock it is likely we’ll have another election before even the next state pension increase is given, making any understanding of what the future looks like extremely difficult to predict," he said.

Related articles