John Healey's Budget confirms the changes to the state pension triple lock that the Prime Minister announced at Labour conference on 29 September. It also creates a new Pension Tax Allowance for pensioners who rely only on the state pension.
The Forces Pension Society says the triple lock will be amended in the next Parliament to "track earnings over time". Travers Smith says the change is estimated to cut state pension spending by £15bn a year by the late 2030s and £50bn a year by the late 2040s.
Healey told the Commons the change would "save £15 billion". Full Fact says that figure needs context. It is how much less the government expects to spend in 2039/40 than it would without the change, not a cut against current spending, and the real saving depends on the economy. The Resolution Foundation calls it a "reasonable central case".
According to Travers Smith, the new allowance applies the 20% basic rate to the gap between the full new state pension and the personal allowance. It is open to people over state pension age with income at or below the full new state pension, and tapers away for those just above it.
The Forces Pension Society says the main pension allowances are unchanged, including the £60,000 Annual Allowance. So are the inheritance tax on pensions rules due in April 2027 and the salary sacrifice cap due in April 2029.