Prime Minister Andy Burnham has vowed to scrap the triple lock pension for pensioners across the UK by 2030, removing one key link. The announcement was made at his first Labour Party conference as Prime Minister, where he promised to end the system to help fund recently announced plans for a new social care system in England.
What is the triple lock pension?
The pensions triple lock currently guarantees that pensions will rise in line with inflation, 2.5% or average earnings, depending on which is the largest increase. However, Mr Burnham has declared he will remove the link to average earnings in the next four years.
Since it was introduced in April 2011, the triple lock has meant that the state pension has increased at a faster rate than if it was based on just one thing such as inflation. The triple lock affects anyone living in the UK who gets the state pension.
Why can the system be scrapped?
As the UK Government is only legally required to increase the state pension in line with the average increase in wages, they are able to scrap the system. In its 2024 manifesto, Labour promised to keep the triple lock unchanged, which the Prime Minister said he would honour throughout this Parliament.
What did the Prime Minister say?
Speaking at his first Labour Party conference speech as leader on Tuesday, September 19, he said: "In April 2030 we will adjust it. The state pension will continue to rise every year at least by prices or 2.5%."
"And it will hold its value relative to earnings over time so that pensioners will always share in the rising prosperity of the nation. But this change will generate significant savings which we will use to build up our National Care Service."
