Prime Minister Andy Burnham has confirmed that the state pension triple lock will remain in place for the duration of the current Parliament, which is scheduled to run until 2029. The policy, which guarantees annual increases in line with the highest of inflation, wage growth, or 2.5%, has come under renewed scrutiny over its long-term cost to the nation.
Under the triple lock's terms, another above-inflation rise to the state pension is expected next spring. The full state pension is projected to climb by over £500 next year, driven by September's wage growth figures exceeding the current inflation rate.
Growing calls to scrap the policy
The Prime Minister has acknowledged ongoing discussions about the triple lock's sustainability but has firmly ruled out abandoning it during the current Parliament. He described going back on a manifesto commitment as "dangerous," according to reports.
The Organisation for Economic Cooperation and Development (OECD) is among influential bodies urging a change to the policy. The OECD has highlighted the increasing financial burden the triple lock places on public finances each year.
Derence Lee, chief finance officer at Shepherds Friendly, commented: "Due to the extremely high levels of inflation the UK has experienced since 2020, state pensions have been increasing at a rate that some experts believe to be unsustainable in the long term."
Income tax personal allowance under review
Separately, there are reports that the Government is considering raising the income tax personal allowance at October's Budget. The threshold has remained frozen at £12,570 since 2021, a freeze that has dragged more pensioners into paying income tax as their pensions rise.
If the allowance were increased, it would help protect more pensioners from being pulled into the tax net, easing the financial pressure on those reliant on the state pension.
The triple lock was originally introduced by the Conservatives and has remained a cornerstone of pension policy across successive governments. Burnham's stance signals continuity on the policy for the remainder of this Parliament, despite mounting pressure from fiscal watchdogs and financial experts.
