New threat to state pension triple lock – scrap it ‘as soon as possible’

The “terrible” state pension triple lock should be scrapped, a think tank previously run by Labour‘s pensions minister has said. The Resolution Foundation said axing the policy – which sees the state pension rise in line with whichever is highest out of average earnings growth, inflation or 2.5% – would save £650 million a year by the end of this parliament.

The left-leaning think tank, which was led by Torsten Bell from 2015 to 2024, called for the guarantee to be replaced with a “smoothed earnings link” based on wage increases and inflation. Chief executive Ruth Curtice said: “The pensions triple lock is a terribly designed policy that has proven to be far more expensive than originally planned, far less effective at reducing poverty than many hoped, and risks causing further economic harm if it continues for much longer.

“The most sensible way to keep the state pension rising in line with the living standards of the rest of society is through a smoothed earnings link, rather than a random ratchet.

“Doing this next year would save £650 million a year by the end of the Parliament – enough to double the current support to help the one million young people not in employment, education or training back into work.

“We cannot afford to keep this policy for another Parliament. The Government should call time on the triple lock as soon as possible, and put the savings from doing so to far better use.”

But Silver Voices director Dennis Reed described the think tank’s call for the triple lock to be ditched as a “very worrying intervention”.

He said: “The Resolution Foundation is heavily involved in developing policy in the Treasury and the Department of Work and Pensions, and would not be stirring the pot on the triple lock without a nod and a wink from the Chancellor and Prime Minister.

“The think tank’s former chief executive, Torsten Bell, is pulling many of the strings in Downing Street.

“It is looking ominous that as a parting shot, Keir Starmer is going to try and pin the blame for the country’s economic woes on pensioners, for having the audacity to live too long. But the public won’t wear any more attacks on older people and if they try to force this through, they will fail.”

Labour has committed to the triple lock for the duration of the current parliament.

Nigel Farage‘s Reform UK has pledged to keep the policy if it wins the next general election.

A Department for Work and Pensions spokesman said: “Supporting pensioners is a priority and we have committed to the triple lock for the rest of this parliament.

“The Pensions Commission is examining how we can ensure secure retirements for tomorrow’s pensioners, while our newly passed Pension Schemes Act will bring about major reform to the UK pensions system, benefitting millions of workers to the tune of up to £29,000 by the time they retire.”