Suggestions have emerged that the government could be considering ending the state pension triple lock. This follows the Prime Minister's recent BBC interview and the timing of a new social care plan.
The triple lock, which has been in place for 16 years and is theoretically set to expire at the end of this Parliament, ensures state pensions increase every April by at least 2.5%, or in line with the highest of prices or earnings.
The policy is currently costing £15.5bn a year, which is triple the original estimates for 2030, largely due to the volatility of prices and earnings. Reverting to an earnings link for pensions could potentially save tens of billions of pounds annually in the long run.
Chancellor John Healey previously stated that both he and the Prime Minister agree on the need to reduce welfare costs, when asked about potential changes to the triple lock in the next Parliament. Labour's Andy Burnham has also indicated he would make tough decisions to fund a new national care service.