Tony Blair's thinktank has urged Labour to scrap the pensions triple lock, calling it 'unaffordable' amid mounting pressure on government finances. The Tony Blair Institute (TBI) said the manifesto pledge should be torn up as part of a wider overhaul of the state pension, warning that Britain's ageing population makes change 'unavoidable'.
The triple lock guarantees that pensions rise each April by the highest of inflation, average wage growth or 2.5%. Introduced in 2010, it has added billions to annual spending due to inflation shocks from Covid and the Ukraine war. The TBI suggested a pre-election pact between parties to end the policy after the next general election.
Chancellor Rachel Reeves has rejected the call, stating: 'We made a commitment in our manifesto to the triple lock and we're not changing that.' The TBI's report warns that without reform, state pension spending could rise from 5% to 7.8% of GDP by 2070, an extra £85bn a year, requiring higher taxes or cuts to public services.
The thinktank proposed replacing the current state pension with a 'lifespan fund', where individuals contribute to a notional fund providing up to 20 years of support. Access would be personalised, allowing people to draw on entitlement before retirement for unemployment, retraining or caring.
A Department for Work and Pensions spokesperson said: 'Supporting pensioners is a priority and our commitment to the triple lock for the rest of this parliament means millions will see their state pension rise by up to £2,100.' They added that the Pensions Commission is examining how to ensure secure retirements for future pensioners.
