Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
Quick links:
  • Home
  • The Actuary Issues
  • June 2017
06

DUP deal safeguards triple lock

Open-access content 26th June 2017

The Democratic Unionist party has today reached a ‘confidence and supply agreement’ with the Conservative party to support Theresa May’s minority government.

2

This means "there will be no change to the Pensions Triple Lock" as stated in a document outlining the terms of the agreement, while the universal nature of the Winter Fuel Payment will also remain.

The PM had planned to move to a double lock system, linking pension increases with inflation or wage rises, rather than the minimum of 2.5% used in the current system, but has sacrificed this in forming a workable majority.

"News that the state pension triple lock will remain until 2022 will be welcomed by those who feared replacing it with a double-lock without the 2.5% underpin," Aegon pensions director, Steven Cameron, said.

"But in practice, if as many expect inflation remains above 2.5% in the coming years, it will actually may make no difference whatsoever. The bigger question is for how long future governments can keep it in place.

"With increased focus on intergenerational fairness, constantly prioritising retirees over those of working age could become increasingly politically difficult."

As part of the agreement, £1bn of financial support will be given to Northern Ireland after the government said it recognised the country's " unique history" in a separate document published today.

The Northern Ireland Executive will spend:

• £400m on infrastructure development
• £350m on health and education
• £150m on providing ultra-fast broadband
• £100m on targeting "pockets of severe deprivation".

However, there are concerns that the deal will provide a boost to one country at the expense of other regions of the UK, and that it may not represent value for money.

"Taxpayers resent politicians cooking up deals behind closed doors that invariably end with their cash being thrown wherever is politically advantageous rather than where it could be best spent," TaxPayers' Alliance research director, Alex Wild, said.

"The unfair way in which money is allocated between the home nations has been clear for decades, best illustrated by the significantly higher levels of public spending in Scotland than in considerably poorer parts of England.

"But until there is a major decentralisation of tax raising powers, Westminster politicians will always be able to dish out taxpayers' cash in a way that benefits them more than the general public."


Sign up to our free newsletter here and receive a weekly roundup of news concerning the actuarial profession

This article appeared in our June 2017 issue of The Actuary.
Click here to view this issue
Filed in:
06
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Actuarial Analyst, Reserving

London (Central)
Up to £75,000
Reference
118759

Actuarial Analyst, Reserving

London (Central)
Up to £40,000
Reference
118758

Student Pricing Actuary

London (Central)
£45,000 - £55,000
Reference
118764
See all jobs »
 
 

Most-Popular

 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2020 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200