Following the agreement between the minority Conservative government and the Democratic Unionist Party (DUP), a warning has been sounded over its possible ramifications for pensions.
Steve Webb, who was pensions minister during the coalition government of 2010-2015, is now director of policy at Royal London. He said: “Retaining the triple lock is likely to be relatively cheap, now that inflation has risen above the 2.5% floor. Means-testing winter fuel payments was always going to be complex and controversial, so many Conservative MPs will be pleased to see this policy ditched.
“However, the DUP decision to back Conservative Finance Bills probably means a greater likelihood of getting cuts to pension tax relief through Parliament.”
The agreement says: “The DUP agrees to support the government on all motions of confidence; and on the Queen’s speech; the Budget; finance bills; money bills, supply and appropriation legislation and estimates … the DUP also agrees to support the government on legislation pertaining to the UK’s exit from the EU and legislation pertaining to national security.”