Andy Burnham's promise to keep the Triple Lock for the remainder of this Parliament means state pensioners face at least a 2.5 per cent increase next year. However, this commitment threatens to widen the disparity between the new full state pension and the old basic rate.
Pension Rate Disparity
The new state pension is claimed by men born after 1951 (aged 75 and above) and women born after 1953 (aged 73 and above). A 2.5 per cent hike, the minimum increase allowed under the Triple Lock, will result in payments of £12,860 for those on the new rate. In contrast, the basic rate will rise to just £9,855, creating a £3,005 difference between the two rates.
Burnham's Confirmation on Reddit
In an 'Ask Me Anything' session on Reddit, Mr Burnham confirmed his commitment to the Triple Lock. Responding to a question about whether it was time to abolish the metric, he said: “I appreciate there’s a lot of debate about this but it is important that the commitment in the manifesto stands.” The Labour manifesto states that the party will “retain the triple lock for the state pension”.
How the Triple Lock Works
The Triple Lock raises the state pension annually by whichever is highest out of inflation, average earnings for working people, or 2.5 per cent. This mechanism ensures pensioners see at least a minimum increase each year.
Personal Allowance Freeze and Tax Relief
In the 2025 Budget, the government announced the personal allowance would be frozen at its current level up to April 2031. It also stated that pensioners whose sole income is the basic or new state pension would not have to pay small amounts of tax via simple assessment from 2027/28 if the new or basic state pension exceeded the personal allowance from that point. Mr Burnham has confirmed he will stick to that promise, alongside new Chancellor John Healey, who replaced Rachel Reeves in the role on Monday.
