New Prime Minister Andy Burnham has confirmed that younger state pensioners under the age of 77 will receive at least an extra £313 per year from next April, thanks to the triple lock mechanism for those with a full National Insurance record.
Triple Lock Policy Confirmed
In his maiden speech, Burnham promised to 'transform' Britain, calling for major change and greater unity. He confirmed he will not alter the state pension triple lock, which guarantees annual increases based on inflation, wage growth, or a flat 2.5%, whichever is highest.
Despite reports from the Office for Budget Responsibility (OBR) that the triple lock is putting the UK on an 'unsustainable path' due to cost, Burnham has maintained the Labour manifesto commitment. Earlier this month, he stated it is “important” to continue this pledge.
Impact on Pensioners
For those who reached state pension age before 2016, the basic state pension is currently £9,614.80 per year. A minimum 2.5% rise would give them an extra £240.37 annually, assuming a full National Insurance record.
For new state pensioners—those reaching pension age after April 2016, aged 77 or under by next April—the current full rate is £12,547.60 per year. A 2.5% increase would add £313.69 annually.
The final increase is likely to be higher, as both wage growth and inflation are tracking above 2.5%. This year, new pensioners received a £575 boost due to 4.8% wage growth.
Political Context
Burnham responded to a Reddit user's question about abolishing the triple lock, saying: “I appreciate there’s a lot of debate about this but it is important that the commitment in the manifesto stands.” The triple lock remains a divisive policy, with critics citing its long-term cost.
