Overview
- The Resolution Foundation published its report on Wednesday calling for the triple lock to be replaced by a smoothed earnings link and estimating savings of about £650 million a year by the end of the current Parliament.
- Independent fiscal analysis from the Office for Budget Responsibility has found the triple lock is far costlier than expected and will add materially to long‑term state pension spending and to the Department for Work and Pensions bill.
- The triple lock guarantees annual increases to the State Pension by the highest of average earnings growth, CPI inflation, or 2.5 per cent, a rule that has driven faster pension growth than wages in recent years.
- The Government and the DWP have reiterated their commitment to keep the triple lock in place for the remainder of this Parliament and no formal policy change has been announced while the Pensions Commission continues its review.
- Senior politicians and industry figures have both urged reform and warned of political risk, with proponents saying saved funds could boost youth programmes and critics saying any change must protect retirees’ financial security and be clearly explained.