A former minister who helped introduce the state pension Triple Lock has issued a stark warning that the policy is no longer sustainable for the long term.
The 'Wonderful Idea' Facing Reform
Sir Vince Cable, a leading Liberal Democrat figure, delivered his assessment to the Treasury Committee. He described the Triple Lock as a "wonderful idea" when initially implemented, praising its progressive nature for lifting many pensioners out of poverty.
However, he cautioned that the mechanism, which increases the state pension annually by the highest of inflation, average earnings growth, or 2.5%, "makes no sense in the long run." Cable suggested that a future government will inevitably have to review the policy.
Why the Triple Lock is Under Scrutiny
Cable explained that the policy was originally designed to tackle the serious issue of pensioner poverty, a goal where he acknowledged significant progress has been made. The core of the problem, he indicated, lies in the demographic challenge of an ageing population and the specific mechanics of the lock.
He highlighted that with current economic conditions, it is the inflation element that is now triggering the increase. He specifically pointed to the mandatory 2.5 percent uplift as being problematic, noting it is "way in excess of current or expected economic growth."
Proposed Changes and Broader Challenges
The former minister proposed a clear solution: moving from a triple lock to a double lock by removing the 2.5% minimum guarantee. He argued this would still protect pensioners from rises in the cost of living but place the system on a "more sustainable basis."
Cable also connected this issue to wider, difficult reforms that governments have historically avoided, specifically mentioning the funding of social care. He stated that due to demographic pressures, these "big, meaty reform issues" will eventually have to be confronted.
While he clarified that immediate change is unlikely, his testimony signals growing political concern over the long-term affordability of one of the UK's most significant welfare commitments.
