A report from the Tony Blair Institute for Global Change (TBI) has called for the abolition of the state pension triple lock, describing the current system as “outdated, increasingly unaffordable and too rigid for the way people live and work”. The think-tank, founded by former Prime Minister Sir Tony Blair, argues that reform is unavoidable due to the UK’s ageing population.
The proposal involves replacing the current state pension with a new fund that would offer earlier payouts for individuals in cases of ill health, unemployment, or caring responsibilities. The triple lock, which increases the state pension by the highest of inflation, average wage growth, or 2.5 per cent each year, has been a significant driver of government expenditure.
According to the TBI, funding the state pension currently costs approximately £146 billion annually, equivalent to 5 per cent of the UK’s GDP. The institute contends that this level of spending is unsustainable in the long term and that a more flexible system is needed to accommodate changing work and life patterns.
