Incoming Prime Minister Andy Burnham has confirmed that the Labour Party will retain the Triple Lock for the state pension for the remainder of this Parliament. The measure guarantees at least a 2.5 per cent increase to state pensions annually. However, retirees born before 1951, who receive the basic state pension, will see a significant disparity compared to those on the full new state pension.
Basic State Pension vs. Full New State Pension
Under the Triple Lock, the Department for Work and Pensions (DWP) full state pension will rise by a minimum of £6 per week next April, increasing from £241.30 to £247.30. In contrast, the basic state pension will rise from £184.90 to £189.50 per week. This leaves basic state pensioners with £57.80 less per week, or £3,005 less per year, compared to those on the full new state pension.
The basic state pension applies to retirees born before 1951 for men and before 1953 for women. Meanwhile, the state pension age is set to rise from 66 to 67, affecting all new pensioners. From April 2026 onwards, an additional month will be added to the state pension age every two months until 2028, when everyone will reach pension age at 67.
Triple Lock Commitment and Affordability Concerns
Mr Burnham, who is expected to become Prime Minister on Monday, has committed to keeping the Triple Lock despite long-standing concerns over affordability. Pensions Minister Torsten Bell has also expressed support for the policy. Speaking to the Work and Pensions Committee in March, Bell said: “We want to make sure that we have a sustainable state pension for the longer term, because one of the most worrying things, if you look at the data at the moment, is the reduction in trust in the pension system. Fairness is a very central part of why the state pension exists, and the design features of the state pension show that that is also something of cross-party consensus.”
Future of State Pension Age
The government has not yet made a final decision on increasing the state pension age to 68. Torsten Bell acknowledged the need for clarity. Economist Paul Johnson, former head of the Institute for Fiscal Studies, commented: “Current legislation is that the pension age will not rise until the mid-2040s. If it is the government’s firm intention that it should rise sooner than that, they need to say so publicly and get on with legislation — and fast. People need certainty and, ideally, at least a decade’s notice.”
