A left-leaning think tank previously led by Labour's pensions minister has called for the state pension triple lock to be scrapped "as soon as possible". The Resolution Foundation, formerly headed by Torsten Bell, argues that the policy is "terribly designed" and too expensive.
Triple lock costs and alternatives
The triple lock guarantees that the state pension rises by the highest of average earnings growth, inflation, or 2.5%. The Resolution Foundation claims that scrapping it would save £650 million a year by the end of this parliament. The think tank proposes replacing it 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."
Curtice added: "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."
Political reactions
However, Silver Voices director Dennis Reed described the think tank's call 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."
Reed added: "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."
