The Tony Blair Institute (TBI) has called on Labour to abandon the pensions triple lock, describing it as 'unaffordable' amid growing pressure on government finances. The thinktank, founded by the former prime minister, argues that the policy, which guarantees annual pension increases by the highest of inflation, average wage growth, or 2.5%, is unsustainable due to Britain's ageing population.
According to the TBI, the number of pensioners is expected to rise from 12.6 million to nearly 19 million by 2070, increasing state pension spending from 5% to 7.8% of GDP—an extra £85 billion annually in today's money. The institute warns this would lead to higher taxes or deeper cuts to public services.
The report suggests a pre-election pact between major parties to end the triple lock after the next general election. It also proposes replacing the current state pension with a 'lifespan fund', where individuals contribute to a notional fund providing up to 20 years of support, with flexible access for unemployment, retraining, or caring.
Chancellor Rachel Reeves has previously ruled out scrapping the triple lock, stating the government remains committed to its manifesto pledge. However, the TBI insists change is 'unavoidable' and calls for political leadership to reform the system, which it says was 'built for a different era'.
