Story perspectives

UK to Replace Triple Lock With CPI-Or-2.5% Pension Rule

By Drooid · Oct 1, 2026, 2:39 PM UTC · How we work

Summary

Story summary

Prime Minister Andy Burnham announced the UK will replace the state pension triple lock from April 2030.
The new rule will raise pensions each year by the higher of CPI inflation or 2.5%, dropping the earnings link.
Labour estimates the reform will save £15 billion annually by the late 2030s, rising to £50 billion by 2050.
The Institute for Fiscal Studies warns savings could range from £4 billion to £20 billion, depending on wage and price trends.

History

Historical Context

In 2010 the Conservative-Liberal Democrat coalition introduced the “triple lock”, and from April 2011 it replaced the earnings-linked rise, guaranteeing the State Pension increases by the highest of CPI, earnings growth or 2.5%. The lock has been kept by successive governments, with the 2024 uplift reaching 8.5%, while Labour’s Andy Burnham now proposes dropping the earnings component to curb the £9 billion cost recorded in 2015.

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Story summary

Prime Minister Andy Burnham announced the UK will replace the state pension triple lock from April 2030.
The new rule will raise pensions each year by the higher of CPI inflation or 2.5%, dropping the earnings link.
Labour estimates the reform will save £15 billion annually by the late 2030s, rising to £50 billion by 2050.
The Institute for Fiscal Studies warns savings could range from £4 billion to £20 billion, depending on wage and price trends.

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