The state pension triple lock will be in the Conservative manifesto for a general election, according to multiple reports.
Both Sky News and the Express newspaper reported that Prime Minister Rishi Sunak will guarantee the policy remains in place under a future Conservative government.
Chancellor Jeremy Hunt told the Express he was “totally committed to the triple lock, which is increasing the state pension by 8.5 per cent next month – worth £900.
“Our track record is clear: we stand square behind Britain’s pensioners.”
It comes after Hunt warned earlier this week at a House of Lords committee that it was “kept under review” and “contingent on how successful we are”.
But a Treasury source has reportedly said the promise – made in 2010 by the Tories to raise state pensions every year by whichever is highest out of average earnings, inflation or 2.5 per cent – would be a renewed commitment when Britain goes to the polls.
The lock was aimed at ensuring pensions are not eroded by cost of living increases over time, but the UK’s ageing population and recent spiralling inflation has prompted questions.
The Institute for Fiscal Studies (IFS) previously said the triple lock cost £11bn a year in public spending, while critics of the scheme warn it contributes to intergenerational divides.
Speaking to the Lords Economic Affairs Committee on Tuesday, Hunt said: “If we are able to run public services more efficiently, if we are able to increase our long-term growth rate, then it is entirely possible we can continue to have the levels of public provision we currently have, and the support for pensioners, and I very much hope that is the case.
“We are confident we can continue to support pensioners in the way we have been in the past.”
His comments prompted fears the pledge could be at risk, before Hunt confirmed it was not.
Ahead of a general election set to be held later this year, economic issues have risen to the fore, with Hunt and Labour shadow Chancellor Rachel Reeves setting out strict fiscal rules.
Labour’s shadow work and pensions minister Liz Kendall previously told City A.M. that her party has “no plans” to change the pensions triple lock.
She said: “We’ve got no plans to change the triple lock at all. And I’m glad the government has actually fulfilled its promises that it made in the last manifesto, to fulfil their obligations.
“Maybe I’m old fashioned, but I think if you make a manifesto promise, you should keep it.”