Burnham scrapes triple lock, pledges £15bn a year for care services
Prime Minister Andy Burnham announced the triple lock will be scrapped in its current form to fund a national care service
In Brief
- •Prime Minister Andy Burnham announced the triple lock will be scrapped in its current form to fund a national care service
- •From 2030 the state pension will rise by inflation or 2.5% each year, but will not link to earnings unless it falls behind
- •The government estimates the adjusted triple lock could free an extra £15bn a year by 2040 for social care
- •The Office for Budget Responsibility warned that keeping the old triple lock would raise state pension spending to 9% of GDP by 2075/76, up from 5% today
Why It Matters
The triple lock has been a key mechanism for protecting pensioners from inflation and wage stagnation, keeping the state pension at about 30% of average earnings. Removing the permanent ratchet is intended to make the pension system more sustainable while redirecting funds toward a national care service, a priority for the Labour government. The change could reduce the fiscal burden on public finances but may also alter the level of support for older workers, affecting their standard of living. The policy shift reflects a broader debate over how best to balance pension generosity with long‑term fiscal sustainability. While the government projects additional savings for care, critics argue that the new approach may leave some pensioners poorer, especially those retiring in the 2060s who could face a 10% shortfall in basic living costs.
Key Details
- Cost of state pension 2026/27
- £154bn
- Projected additional savings by 2040
- £15bn per year
- Projected state pension share of GDP by 2075/76 if unchanged
- 9% of GDP
- Projected state pension share of GDP currently
- 5% of GDP
- Projected pensioners lacking funds 2060s
- 10%
Context & Background
The triple lock was introduced in 2010 to ensure that state pension increases outpace inflation and wage growth, aiming to protect pensioners from relative poverty. It has since been a subject of debate over its fiscal impact and fairness to future retirees.
Original Reporting & Sources
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