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Monday, 10 June 2013

Balls challenged to 'explain' Labour’s plan for pension cuts

The Conservative Party Chairman Grant Shapps has written to the Shadow Chancellor Ed Balls, challenging him to “explain” why Labour "want to cut the Basic State Pension." In a letter today, Grant Shapps presses Ed Balls to explain immediately “why Labour would rather hit hardworking people who have saved and done the right thing, rather than cap spending on benefits”. 

The letter follows Ed Balls’ commitment to “cap” the Basic State Pension on the BBC's Sunday Politics during an interview with Andrew Neil. The Tories claim this means that the Labour party if they were to win the next election would have to abandon the coalition's 'triple lock' which increases the Basic State Pension by average earnings, inflation or 2.5 per cent, whichever is the highest.

Conservative Party Chairman Grant Shapps said: 
“Pensioners in my constituency will have been very alarmed to see your comments this weekend pledging to cut the State Pension. This would mean ending the triple lock and would return us to the shameful situation where in one year a Labour Government only increased the State Pension by 75p. Pensioners should never again have to endure these derisory increases overseen by Gordon Brown.”

“Labour should be looking to end the something for nothing culture and support this Government’s efforts to fix the welfare system, so that it always pays more to be in work than on benefits. Instead, you have opposed over £83 billion of welfare savings and have now decided to prioritise capping spending on pensions, rather than capping benefits.”

“Please can you write to me immediately so I can explain to my constituents why Labour would rather hit hardworking people who have saved and done the right thing, rather than cap spending on benefits.”