A policy think tank has called for the triple lock to be scrapped, as it urged the Government to announce an end date and focus on an earnings-based approach to State Pension uprating. The triple lock commitment is a mechanism that ensures that the State Pension rises based on the highest of three measures: average earnings, inflation, or 2.5%.
Rises are implemented annually every April, with sizeable increases in recent years. April 2023, saw a record 10.1% boost as inflation skyrocketed. 2024 and 2025 saw 8.5% and 4.1% increases, respectively, both based on earnings growth. Earnings also drove the uprating in 2026, with the State Pension rising by 4.8%, while many other DWP benefits climbed by just 3.8 per cent. Policy experts at thinktank the Resolution Foundation support the State Pension rising, but believe a new approach is needed to ensure that the costs are sustainable, and the payments don’t continue to “rachet up” and far surpass other benefits linked solely to inflation.
They’re calling on the Government to get rid of the policy and link State Pension increases to earnings to address the imbalance and reduce the cost rising life expectancy and compounding increases will add over time, The Daily Star reports.
In a policy document entitled What a Ratchet published this week, the group blasted the triple lock a “poorly designed, unfair, arbitrary ratchet that we could never afford”.
Alex Clegg, economist with the group, said: “We are urging the Government and politicians to announce an end date for the triple lock so that it doesn’t continue indefinitely.”
The policy was introduced to ensure that state pensions weren’t left short due to cost of living pressures and inflation, and many now believe it has fulfilled its purpose.
Labour has vowed to maintain the triple lock for the rest of this Parliament, but since the announcement the long-term future of the policy has become the subject of heated debate, with the public finances under heavy strain.
Mr Clegg said the increase measure can’t go on indefinitely, a position that is widely held among fiscal experts.
He said: “As life expectancy rises and the population ages, we are likely to see both a rising state pension age and an end to the triple lock.
“Changes to the state pension age are carefully considered based on the evidence. We want the same approach taken to state pension uprating.”
The state pension age is currently being increased in phases, from 66 to 67 between April 2026 and April 2028. Legislation is also on the books for a further increase, from 67 to 68, between 2044 and 2046.
A previous review of the state pension age recommended accelerating the move from 67 to 68. The Government announced last year there would be another review of the state pension age.
The foundation argues there should be a “smoothed earnings link” to decide how much the state pension increases, instead of the “randomness” of the three-pronged measure which bakes in the impact of economic shocks over the longer term.
“This would ensure it rises in line with the living standards of the rest of society, while avoiding the random ratchet element of the triple lock,” Mr Clegg explained.
“This uprating policy would still be far more generous than that applied to working-age benefits, which only rise in line with prices.”
If the state pension were to become less generous in terms of the yearly uplift, the Government could look to increase private pension contributions to help ensure people have sufficient finances for their post-work years.
The auto enrolment system obligates employers to provide a workplace pension for all workers earning over a certain amount.
Eligible workers have to pay a minimum of eight per cent of their earnings into a pension, which is often arranged as a 5%- contribution from the employee and a 3% contribution from their employer.
Addressing this question, Mr Clegg said: “Auto enrolment has been a huge success, and there is certainly a case for rising contribution rates to further boost pension saving.
“However, we have noted that many low-income families also face a more immediate savings challenge – around one-in-three have less than £1,000 in liquid savings.
“So, any increase in contribution rates should include an option for workers to save into a liquid sidecar savings scheme. This would help to tackle both our savings challenges – saving for retirement and rainy day challenges.”
A Department for Work and Pensions spokesman said: “Supporting pensioners is a priority and we have committed to the triple lock for the rest of this parliament.
“The Pensions Commission is examining how we can ensure secure retirements for tomorrow’s pensioners, while our newly passed Pension Schemes Act will bring about major reform to the UK pensions system, benefitting millions of workers to the tune of up to £29,000 by the time they retire.”