Burnham Upholds Triple Lock, Delivering £1,900 Boost
Andy Burnham, set to become Labour Prime Minister on Monday, has confirmed a £1,900 payment increase for state pensioners born before 1960. The move upholds the Triple Lock pledge, benefiting over 12 million pensioners across the UK. The Labour government had already confirmed in April that the State Pension would increase by up to £1,900 over this parliament under the Triple Lock system.
The Triple Lock guarantees that the state pension rises every April by the highest of three measures: the previous September's inflation rate, average wage growth, or a minimum of 2.5 per cent. This commitment comes despite warnings from the Organisation for Economic Co-operation and Development (OECD), which described the guarantee as “unusually generous in international comparison”.
OECD Warns of Fiscal Risks
In its latest UK economic survey, the OECD stated: “Under the triple lock, state pensions have risen significantly faster than earnings, adding fiscal pressures and uncertainty, particularly during periods of macroeconomic volatility or weak growth.” The Paris-based think tank added that “reforming the triple lock is necessary to reduce fiscal risks, but requires careful preparation and consideration of public acceptability.”
The OECD also noted that the uprating formula has “regressive distributional implications, benefitting wealthier and higher-income individuals more as they tend to live longer.” Despite these concerns, Burnham has previously said it would be “very damaging” to break from Labour’s manifesto commitment to the Triple Lock.
Chancellor Reeves Defends Economic Plan
Current Chancellor Rachel Reeves defended the government’s approach, saying: “The OECD agrees that we have restored stability, putting the economy in a much stronger position than it was two years ago.” She added that the government has “the right economic plan to build a stronger, more secure Britain.” Reeves is widely expected to be replaced as Chancellor by Burnham, who will take over from outgoing Sir Keir Starmer on Monday.
