Responses to announced changes to Triple Lock on state pension
In his speech to the Labour Party conference last week, the Prime Minister announced that he would end the triple lock on the state pension.
5 Oct 2026
In his speech to the Labour Party conference last week, the Prime Minister announced that he would end the triple lock on the state pension.
The triple lock currently sees the state pension rise by the highest of average earnings growth, consumer price index (CPI) inflation and 2.5%. This had led to significantly rising costs for the Exchequer as well as volatility in the annual uplift.
The new mechanism will mean that instead of average earnings growth for a particular year the state pension will increase by the maximum of CPI inflation, 2.5% and an amount needed to keep the growth in state pension in line with average earnings growth since the introduction of the new policy.
Calculations from the Institute of Fiscal Studies (IFS) suggest that, if the new triple lock had been in place since 2010 instead of the current mechanism, expenditure in 2026/27 would be £9 billion lower than it currently is. It is intended that the savings from the new mechanism will be recycled into social care, a move supported by the Resolution Foundation. Ruth Curtice, Chief Executive of the Resolution Foundation said:
'Recycling the savings from scrapping the triple lock into social care will especially help vulnerable pensioners who stand to lose far from a broken care system than they gain from a random ratchet on how the State Pension is increased.'
Jonathan Cribb, Deputy Director at IFS, commented:
'State pensions will still rise, but more sustainably.'
Internet links:
