New proposals call for scrapping the Triple Lock
Millions could face significant changes to the State Pension following new proposals to abolish the Triple Lock and restructure how support is delivered.
The Tony Blair Institute for Global Change argued the existing system is “outdated” and overly inflexible, cautioning that expenditure will surge dramatically as the population ages.
In its place, it advocates for a new ‘Lifespan Fund’ enabling people to draw on portions of their State Pension earlier in life – rather than solely upon reaching official retirement age. Under these plans, people would accumulate entitlement gradually through employment, caring responsibilities, education and other recognised activities, similar to how National Insurance (NI) contributions operate currently.
Each year of NI contributions would contribute to a notional fund, with approximately 40 years of contributions generating roughly 20 years of State Pension-style support. Brits could then opt to utilise part of that entitlement before hitting retirement age – for instance during spells of unemployment, while retraining, or when looking after a family member. Nevertheless, early access would carry restrictions, reports the Daily Record.
People would be required to maintain a minimum level of support for later life, and anyone withdrawing money early would be expected to replenish their fund through increased NI contributions upon returning to employment.
The proposals also indicate people could only retire prematurely if they possess sufficient income to reach approximately £12,500 annually – broadly aligned with the full New State Pension. In a further shake-up, the existing State Pension age would be abolished and replaced with a more adaptable framework, giving people the freedom to choose when they begin receiving payments.
The annual sum received would vary depending on when it is claimed, meaning those who access funds earlier could receive less as they get older. Payments could also be tailored according to a person’s health and life expectancy, rather than a fixed retirement age – a move the report suggests would create a fairer system for those in poorer health.
State Pension Rates 2026/27
Full New State Pension
- Weekly: £241.30 (from £230.25)
- Four-weekly pay period: £965.20
- Annual amount: £12,547
Full Basic State Pension
- Weekly: £184.90 (from £176.45)
- Four-weekly pay period: £739.60
- Annual amount: £9,614
Other State Pension rates
- Category B (lower) Basic State Pension – spouse or civil Partner’s insurance: £110.75 (from £105.70)
- Category C or D – non-contributory: £110.75 (from £105.70)
The new payment rates started on April 6.
However, a central element of the proposal involves scrapping the Triple Lock – the annual uprating mechanism that guarantees the State Pension increases each year by the highest of inflation, earnings or 2.5 per cent. The report contends this should be substituted with a link to earnings from around 2030 to keep long-term expenditure in check.
It cautions that without reform, State Pension spending could climb from roughly 5 per cent of GDP today to 7.8 per cent by 2070 – adding tens of billions of pounds annually to public spending.
Tom Smith, Director of Economic Policy at the institute, said: “Britain’s State Pension system was built for a different era. We can’t keep pouring money into a system that is increasingly unaffordable.
“Ending the Triple Lock will require political leadership, but it should only be the first step towards building a system that is fairer and more flexible.” These proposals are not official UK Government policy and no changes have been confirmed, but they underline the mounting strain on the State Pension system as the number of retirees continues to grow.
Tom Selby, director of public policy at AJ Bell, said: “The Triple Lock has become politically untouchable, but a State Pension rising faster than wages and inflation isn’t sustainable long term. The government’s main options to control costs are how much it pays and when people can claim, which is why the State Pension age is already rising.
“Plans to replace the current system with a more flexible model could help some people, particularly those in poor health, but tying payments to life expectancy and health data would be hugely controversial, complex and open to abuse.
“The current system is simple and provides certainty, but it is becoming increasingly expensive – meaning reform is likely unavoidable at some point.”
A Department for Work and Pensions (DWP) spokesperson said: “Supporting pensioners is a priority and our commitment to the Triple Lock for the rest of this Parliament means millions of pensioners will see their yearly state pension rise by up to £2,100.
“The Pensions Commission is already examining how we can ensure secure retirements for tomorrow’s pensioners and for those that have not reached state pension age but need extra support, a range of options such as universal credit and other means-tested and disability-related benefits are available.”
