Triple Lock Reform Likely Under Burnham
Two changes to private and state pensions that Andy Burnham is set to make as Prime Minister have been revealed. The Labour MP for Makerfield is widely expected to become the next Prime Minister following Sir Keir Starmer's anticipated resignation. According to Tom Macphail in The Times, at least two pension reforms are likely under Burnham.
Macphail warned that some reform of the state pension triple lock looks probable. Lord O'Neill of Gatley, who has been advising on economic policies, described the triple lock as “bonkers”. Richard Hughes, head of the Office for Budget Responsibility from 2020 to 2025, also said the policy is unsustainable.
Burnham's Commitment to Triple Lock
Macphail wrote: “Mr Burnham has said that he would honour Labour’s 2024 manifesto promise to keep the triple lock for the duration of this parliament. With the government’s Pensions Commission delivering its final report in 2027, a move to scrap the lock after the general election wouldn’t be a surprise.”
Private Pension Tax Relief at Risk
On private pensions, another Burnham adviser, former Bank of England economist Andy Haldane, has argued that the tens of billions of tax relief granted on pension contributions should be conditional on pension schemes investing more in UK growth assets, such as private companies and infrastructure. Macphail commented: “Will Burnham listen to him and perhaps put our pension tax relief at risk? I sincerely hope not because this is idiocy on stilts.”
