Pensioners who rent their homes from private landlords could be in line for additional financial support from the Department for Work and Pensions, according to expert testimony given to MPs. This potential boost is linked to a possible future overhaul of the state pension's 'triple lock' mechanism by the Labour government.
Experts Warn Triple Lock is 'Ultimately Unsustainable'
Senior figures from two leading economic think tanks appeared before the parliamentary Work and Pensions Committee to discuss the future of pension policy. Jonathan Cribb, deputy director of the Institute for Fiscal Studies, stated that there is broad agreement that the triple lock mechanism is 'ultimately unsustainable'.
He explained that a more sustainable system, which does not constantly ratchet up the state pension, will need to be established. Mr Cribb suggested that moving away from the triple lock could free up Treasury funds. These resources could then be redirected to provide targeted help for vulnerable groups, including older private renters.
Targeted Support for Renters and Older Women
One key group identified for potential additional support is state pensioners living in the private rented sector. 'Their housing benefit is not particularly generous,' Mr Cribb told the committee. He proposed that reform could allow the government to 'try to move away from the triple lock while providing some additional support for people in the private rented sector'.
Another significant inequality highlighted was the position of women who reached State Pension age before 2010. On average, this group receives a 'massively less generous State Pension'. Addressing such disparities could be another focus if the triple lock system is revised.
Mounting Pressure from an Ageing Population
The need for a sustainable long-term solution is underscored by stark projections from the Office for Budget Responsibility (OBR). The ageing population is set to place considerable strain on public finances in the coming decades.
If current government policy continues—including maintaining the triple lock and raising the state pension age to 68 by 2046—spending on the state pension, Pension Credit, and Winter Fuel Payment is forecast to rise sharply. The OBR expects an increase equivalent to 1.2% of national income by 2050.
In today's terms, that represents an extra £32 billion per year. This surge is driven by two main factors: a 25% increase in the number of pensioners by 2050, and the method used to index the state pension.
However, the financial pressures from health and social care are projected to be even greater, with spending expected to rise by 4.1% of national income (£105 billion annually in today's money) over the same period. This context makes the debate around pension spending and targeted support more critical than ever.
