The Department for Work and Pensions (DWP) state pension triple lock is facing renewed pressure after fresh analysis revealed a widening gap in poverty rates between pensioners and working-age adults. The Intergenerational Foundation found that pensioners are now at a significantly lower risk of living in relative poverty compared to working-age adults, prompting renewed calls for the policy to be scrapped.
Pensioner poverty halves over three decades
According to analysis by the Intergenerational Foundation, the number of pensioners in relative poverty has dropped from 28 per cent in 1994-95 to 14 per cent in 2024-25. This comes after housing costs have been cut in half over the past three decades. In contrast, poverty among working-age adults has remained steady at around 20 per cent over the same period.
Relative poverty is defined as occurring when a family's income is too low to maintain an average living standard. The figures suggest that the triple lock, which guarantees annual increases to the state pension, has been effective in lifting pensioners out of poverty, but at a time when working-age poverty remains stubbornly high.
Calls to scrap the triple lock
Andy Burnham is under fresh pressure to scrap the triple lock pledge amid fears it is becoming unsustainable. Toby Whelton, an economic researcher for the Intergenerational Foundation, said: "Policy must adapt to the changing face of poverty, with resources directed towards those who need them most. Age alone can no longer be treated as a proxy for financial need."
John O'Connell, the chief executive of the TaxPayers' Alliance, added: "While the triple lock may have been needed in the past, as more than half of welfare spending is now being paid to pensioners, it is simply unsustainable and not affordable. To ensure fairness, future increases to the state pension should be solely linked to inflation."
How the state pension and triple lock work
There are currently two DWP State Pension systems — the 'basic State Pension' and the 'new State Pension'. The Labour Party government introduced the new State Pension in 2016 to replace the basic State Pension, which will eventually be phased out.
If you receive the basic State Pension, the full amount for the 2026/27 tax year is £184.90 a week, or £9,615 per year. To claim the full amount, you usually need to have made National Insurance contributions for at least 30 years.
In 2010, the government introduced the 'triple lock system'. This means the State Pension increases each April, in line with whichever of these three measures is the highest: inflation in September of the previous year, as measured by the Consumer Price Index; the average increase in wages for May to June of the previous year; or 2.5 per cent.
A spokesperson for the Department for Work and Pensions said: "The state pension is the foundation of financial support for people in retirement, and we are committed to ensuring the system works fairly for present and future generations."
