PM Burnham plans to end state pension triple lock from 2030 for care funding
UKPulse Money Desk
Prime Minister Andy Burnham has announced plans to end the existing state pension triple lock from 2030 to help fund a new national care service. The state pension would instead rise annually by at least inflation or 2.5%.
- The existing state pension triple lock is planned to end from 2030.
- The change aims to generate 'significant savings' to fund a new national care service.
- The state pension would increase annually by at least inflation or 2.5%.
Prime Minister Andy Burnham has outlined a plan to end the existing state pension triple lock from 2030. The proposed change is intended to help fund a new national care service, as detailed during his Labour Party conference speech.
Under the new proposals, the state pension would increase each year by at least inflation or 2.5%. This would remove the current automatic annual link with average earnings, which is a component of the triple lock introduced in 2010.
Officials have suggested that this adjustment could lead to savings of £15 billion per year by 2040. Jonathan Cribb, deputy director at the Institute for Fiscal Studies, noted that initial savings are likely to be modest but would increase substantially over time.
Burnham also stated that he wants to pave the way for greater public control over housing, water, and energy services, and potentially reform the UK's electoral system. He indicated that legislation would be put before Parliament to repeal the ban on public ownership of water companies.
Why this matters: The proposed change to the state pension triple lock from 2030 could alter how state pensions are uprated annually, with potential long-term financial implications for pensioners and the funding of social care.
What this means for you: If implemented, the state pension will continue to rise annually by at least prices or 2.5%, but the automatic link to average earnings growth would be removed from 2030. This change is intended to fund a new national care service, which aims to prevent older people with limited income from paying care charges from their state pension.