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Burnham pledges to reform state pension triple lock to fund care service

Andy Burnham has stated that Labour will propose dropping the state pension triple lock in its next election manifesto to fund a new National Care Service.

  • Labour plans to link state pension rises to inflation or 2.5 per cent annually, while maintaining its value relative to earnings over time.
  • The proposed reform aims to address social care costs, which independent researchers estimate could reach £18bn by 2035.
  • Burnham also pledged to end the ban on public ownership of water companies and give councils greater powers over housing.

Andy Burnham has announced that Labour intends to remove the triple lock on state pensions from its manifesto for the upcoming general election. The proposed change is intended to finance a new National Care Service.

In a speech to party members, Mr Burnham stated that the party would link annual state pension increases to either inflation or 2.5 per cent. He added that the pension's value would be maintained relative to earnings over time.

Mr Burnham described the commitment to reform the triple lock as a "good deal" for addressing social care costs. Independent healthcare researchers estimate these costs could rise to £18bn by 2035. The Institute for Fiscal Studies has suggested the current triple lock could increase public spending by up to an additional £40bn over the next 25 years.

The speech also included pledges to end the ban on public ownership of water companies, potentially leading to nationalisation over a decade. Additionally, Mr Burnham announced plans to grant councils more authority over housing and stated Labour would campaign on a platform of constitutional and electoral reform.

Why this matters: The proposed reform of the state pension triple lock could significantly alter how state pensions are increased, impacting future public spending and the funding of social care.

What this means for you: If enacted, the proposed change to the state pension triple lock could alter the rate at which your state pension increases in the future.

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