Critics say the triple lock is a ‘terribly designed policy’
The future of the triple lock is in doubt as the policy continues to ramp up the cost of the state pension. The measure ensures that state pension payments rise each April in line with the highest of three measures: 2.5 per cent, the rise in average earnings or inflation.
The metric has provided some sizeable pay increases in recent years, including a record 10.1 per cent boost in April 2023, thanks to soaring inflation. This was followed by another 8.5 per cent pay boost the following year using the earnings increase measure. State pensioners enjoyed a 4.8 per cent increase to their payments in the least increase in April 2026, while many other DWP benefits went up just 3.8 per cent. Policy experts at thinktank the Resolution Foundation are urging the Government to scrap the policy and switch to an earnings-linked increase.
The group blasted the triple lock as a “terribly designed policy” which has ramped up costs much more than expected. 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.”
‘Based on the evidence’
Labour has pledged to maintain the triple lock for the rest of this Parliament. But Mr Clegg said the increase measure can only last so long. 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 moving up, increasing in stages from 66 to 67 between April 2026 and April 2028. Legislation is also on the books for another increase, from 67 to 68, between 2044 and 2046.
A previous review of the state pension age recommended bringing forward the move from 67 to 68. Labour announced in 2025 there would be another review of the state pension age. Instead of the triple lock, the foundation says there should be a “smoothed earnings link” to decide how much the state pension increases.
Mr Clegg explained: “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. 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 is to become less generous in terms of the yearly increase, the Government could look to increase private pension contributions to make sure people have adequate finances for their retirement. The auto enrolment system obliges employers to provide a workplace pension for all workers who earn over a certain amount.
£1,000 savings problem
For workers who are eligible, they have to pay in a minimum of eight per cent of their earnings have to be paid into a pension. This is often arranged as a five per cent contribution from the employee and a three per cent contribution from the employer.
On 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.”