The Resolution Foundation, a prominent policy think tank, has called for the abolition of the triple lock mechanism for State Pension increases, urging the government to set an end date and transition to an earnings-linked system. The triple lock ensures that the State Pension rises annually based on the highest of average earnings growth, inflation, or 2.5 percent.
Recent Increases Under the Triple Lock
Recent years have seen substantial increases: a record 10.1 percent in April 2023 due to soaring inflation, followed by 8.5 percent and 4.1 percent in 2024 and 2025 respectively, both tied to earnings. In 2026, the State Pension rose by 4.8 percent, again driven by earnings, while other DWP benefits increased by only 3.8 percent.
Criticism of the Triple Lock
In a policy document titled "What a Ratchet," the Resolution Foundation described the triple lock as a "poorly designed, unfair, arbitrary ratchet that we could never afford." Economist Alex Clegg stated, "We are urging the Government and politicians to announce an end date for the triple lock so that it doesn't continue indefinitely." The foundation supports pension increases but argues that a sustainable approach is needed to prevent costs from escalating uncontrollably.
Proposed Earnings-Linked System
The think tank recommends replacing the triple lock with a "smoothed earnings link" to align pension growth with broader living standards while avoiding the randomness and ratchet effect of the current system. Under this proposal, the State Pension would still rise more generously than working-age benefits, which are only linked to prices.
Impact on Public Finances
Labour has committed to maintaining the triple lock for the remainder of this Parliament, but the long-term future remains contentious amid strained public finances. Alex Clegg noted that as life expectancy rises and the population ages, both a higher state pension age and an end to the triple lock are likely. The state pension age is increasing from 66 to 67 between 2026 and 2028, with a further rise to 68 scheduled between 2044 and 2046. A previous review recommended accelerating this timeline, and the government has announced another review.
Role of Auto Enrolment
If the annual uplift becomes less generous, the government could boost private pension contributions through auto enrolment. Currently, eligible workers contribute a minimum of 8 percent of earnings (typically 5 percent from the employee and 3 percent from the employer). Clegg acknowledged that auto enrolment has been successful but suggested that any increase in contribution rates should include an option for workers to save into a liquid sidecar savings scheme, addressing both retirement and emergency savings needs.
Government Response
A Department for Work and Pensions spokesperson 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."
