State pensioners are set to receive more than £2,000 in triple lock boosts before the system is changed in 2030. The new Prime Minister announced this week that the state pension triple lock will be cut from 2030, removing wage growth from the calculations, in a move expected to save taxpayers up to £20bn.
Money redirected to National Care Service
The money saved will be redirected towards the foundation of a new National Care Service, which will provide free social care in a similar way to the NHS, free at the point of use, but funded through taxation.
The triple lock is not set to be ended until 2030, meaning there are still at least three more triple lock uplifts set to boost state pension incomes before the end of the decade. The Government promises these will add at least another £2,000 onto the value of state pension payments between now and then.
Government statement on changes
Following the announcements at The Labour Party Conference, the Government said: "The new National Care Service will be introduced in phases, so its scope can grow as the savings increase from adjusting the Triple Lock, and as workforce and provider capacity are built up. It will be fully funded – and not through borrowing. Baroness Casey will recommend how this could be done through the work of her independent Commission, which is being informed by public deliberation and ongoing cross-party talks. Her report is due in summer 2027."
The statement continued: "The current Triple Lock will be maintained throughout this Parliament, increasing the State Pension by over £2,000. From April 2030, the adjusted Triple Lock will mean the State Pension continues to rise by 2.5% or inflation - whichever is higher – and by even more if that is required to maintain its value relative to earnings."
Pensioner living standards protected
The Government added: "This will ensure the living standards of pensioners keep up with the rest of the population. For example, if the value of the State Pension is around a third of average earnings by 2030/31, as average earnings rise, the State Pension will rise in line with that too."
"This adjusted Triple Lock will mean that if inflation spikes, pensioners will be protected. If wages rise, pensioners will share in that, with the State Pension tracking earnings over time. Nobody’s pension will ever go down. And State Pensions will be put on a sustainable footing for decades to come."
